Apple's momentum 'meltdown' bites investors
((Corrects value of Tim Cook's stake in second paragraph to show it is now worth around $109 million compared with $127 million in April, not $12.76 billion compared with nearly $15 billion))
By Saqib Iqbal Ahmed
NEW YORK (Reuters) - Has the "curse of the Dow" finally caught up with Apple?
Shares of the iPhone maker have been in a rut since posting disappointing quarterly results in late June, falling to a six-month low of $113.25 on Tuesday.
The recent declines have wiped out nearly $100 billion of Apple's market value - about as much as fellow Dow components Boeing and McDonald's are worth in total. For CEO Tim Cook, it means his stake of 950,000 shares, worth more than $127 million in late April, is now worth around $109 million.
The dropoff represents a notable bout of weakness for a stock basically impervious to pain for the better part of two years.
Strategists pinned the sell-off on the steady run in the shares, as the stock has gained more than 137 percent since hitting a low in April of 2013. In addition, more than 5,700 different funds already own the shares, according to Morningstar data. With Tuesday's declines, the shares have dropped 13 percent over the last 11 trading days.
"When you get a stock that is over-owned it’s difficult to find that incremental buyer," said Art Hogan, chief market strategist at Wunderlich Securities in New York. "It’s having its own momentum meltdown."
The declines have left the company's shares below their 200-day moving average, a measure of the long-term trend in the stock. Shares closed at $114.64 on Tuesday. Continued...