Technology giant Apple’s stock price has fallen to its lowest level in over a year, marking a sharp decline in the overall stock price of the company – once the hottest commodity on trading floors.
Apple’s stock traded at $420 a share on Monday night, which is the lowest level that it has been since January last year, when it was trading at $419.81.
The result is significant, particularly if one considers the impact of the announcement of the new iPhone in 2012 and the subsequent value of shares that hit a record high of $705.07 in September last year.
Its current price represents a drop of over 40%.
A report issued by the company in January 2013 alluded to the scenario in which its growth phase might be coming to an end.
In recent years, Apple has enjoyed a relatively stable growth cycle in terms of stock price, but only four years ago the company was trading at a low of $82.33.
Berkshire Hathaway CEO and billionaire Warren Buffett recently revealed that he gave Apple’s CEO Tim Cook some advice on the shares, which he declined to take.
“When Steve (Jobs) called me, I said, ‘Is your stock cheap?’ He said, ‘Yes.’ I said, ‘Do you have more cash than you need?’ He said, ‘A little.’ I said, ‘Then buy back your stock.’ He didn’t. But if you could buy dollar bills for 80 cents, it’s a very good thing to do,” Buffett told CNBC’s Squawk Box Monday.
“You can’t run a business to push the stock price up on a daily basis. Berkshire has gone down 50 percent four times in its history. When that happens, if you’ve got money, you buy it,” he added.
Apple shares are expected to remain on the decline, with rival mobile phone maker Samsung set to unveil the Samsung Galaxy IV on 14 March and the imminent arrival of new BlackBerry phones.
Apple is due to release a new version of its hugely popular iPhone at the tail end of the year, as well as their highly publicised iWatch.
But why are investors retreating from Apple? “It’s a combination of no new information coming out of the company about products or how the company is going to use its cash. It’s left a void of catalysts for the stock,” said Walter Piecyk of BTIG Research.
Charlie Fripp – Consumer Tech editor