T.T. nails it. What about Apple’s $450-billion loss?
No, Apple Inc. did not lose $452-billion in value. APPL did. They are not the same. One is the company. The other is the value of stock, as ascertained by shareholders and the stock market. APPL has fallen about 40-percent since the record high of a trillion dollars or so a few months ago.
Why? Too many investors do not care about well-run companies.
Apple’s price-to-earnings ratio– a key metric to determine a company’s health– is excellent, especially when compared to market competitors– Microsoft, Google, Amazon, et al. Look at what the market did to HP. The P/E is excellent at just over 6 (Apple is 12, Microsoft is 26, Google is 35, Amazon is an atrocious 347) but the stock market rewards the company with a ridiculously undervalued market cap of barely $32-billion.
Too many investors are interested only in the direction of the herd. How many of those investors help to manipulate stock?