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Here are two things that haven’t changed since May: Barack Obama is president and Apple (NASDAQ: AAPL) shares are trading at around $560.
That’s right – the world’s largest stock has hit a six-month low today, just hours after Obama 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 iPad Mini 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 electronic tablets.
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 since February.
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.