Apple had a rare intraday reversal in its share price yesterday, which ended up more than $25 off their all-time highs, reached just the same day. Analysts were wondering what is going on, and whether this is simply due to the rebalancing of the NASDAQ index rumors, so Apple doesn't have such a major weight in it.
Apple's
valuation is far from reaching the weight limit on the NASDAQ yet,
though, and the index gurus have repeatedly said it doesn't need any
rebalancing just yet, so there might have been other factors in play.
One
of these factors that might have spooked Apple's investors, with its
shares the poster child of many ETFs, hedgies and pension funds, is the
trademark saga with Proview in China. Authorities are banning iPad sales in a few cities, and Apple itself asked the local branch of Amazon to stop offering iPads from other retailers until its appeal verdict comes in.
China
is a market of huge and growing importance for Apple, so any hiccups
there are likely to spook investors a bit, despite the fact that Apple
doesn't make nearly as much from the iPad compared to the iPhone golden
goose. Add that to the fact that some people just wanted to take some
profits after Apple's nice ride to $500 a share in the past weeks, with
automated orders to sell a bit of shares when they hit that threshold
kicking in, and the rare 2%+ slide in Apple's shares makes much more
sense.
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