Apple's stock suffers worst week since 2013

Fri Apr 29, 2016 4:15pm EDT
 
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By Noel Randewich

SAN FRANCISCO (Reuters) - Apple Inc on Friday ended its worst week on the stock market since 2013 as worries festered about a slowdown in iPhone sales and after influential shareholder Carl Icahn revealed he sold his entire stake.

Shares of Apple, a mainstay of many Wall Street portfolios and the largest component of the Standard & Poor's 500 index, have dropped 11 percent in the past five sessions.

That shrank the technology behemoth's market capitalization by $65 billion, about equivalent to Cambodia's net wealth.

Confidence in the Cupertino, California company has been shaken since posting its first-ever quarterly decline in iPhone sales and first revenue drop in 13 years on Tuesday, although Apple investors pointed to the stock's relatively low valuation as a key reason to hold onto the stock.

"If you're going to buy Apple, you have to buy it for the long term, because the next year or two are going to be very tough," said Michael Yoshikami, chief executive of Destination Wealth Management, which owns Apple shares.

Faced with lackluster sales of smartphones in the United States, Apple has bet on China as a major new growth engine, but progress there has been a let-down.

Revenue from China slumped 26 percent during the March quarter and its iBooks Stores and iTunes Movie service in China were shut down last week after the introduction of new regulations on online publishing.

Pointing to concerns that Beijing could make it difficult for Apple to conduct business in China, long-time Apple investor Carl Icahn told CNBC on Thursday that he had sold his stake in the company he previously described as a "no brainer" and undervalued.   Continued...

 
A 3D printed Apple  logo is seen in front of a displayed stock graph in this illustration taken April 28, 2016. REUTERS/Dado Ruvic/Illustration