Here are two things that haven't changed since May: Barack
Obama is president and
shares are trading at around $560.
That's right - the world's largest stock has hit a six-month
low today, just hours after
was re-elected to a second term as president. As of 1 p.m.
eastern time, Apple shares had fallen 3.5% to dip to $561.60 -
the stock's lowest level since May 18.
The drop-off has been steep. Just six weeks ago, Apple was
trading above $700 a share for the first time in its history. The
stock has since shed exactly 20%.
Apple isn't alone in its travails today. All stocks are
selling off, with markets down 2.4%. And November is typically a
cruel month for Nasdaq stocks in election years.
But Apple's troubles extend back much further than today. Its
new iPhone 5 and
products failed to woo investors the way past Apple product
launches have. Many were particularly discouraged by the iPad
Mini's high price tag when compared to other companies' 7-inch
A sluggish quarterly earnings report on October 25 has also
weighed on Apple shares. The company fell short of analyst
expectations for a second straight quarter.
When will this Apple tailspin end? The holiday shopping season
should help. And the stock hasn't dipped below the $530 level
At less than 10 times forward earnings, Apple is as cheap as
it's been in months.
We may be near a bottom in the world's largest company. But
with the stock having coughed up virtually all its gains since
early March, the damage has already been done.