In fact, Apple is trading in line with a decade’s worth of share price increases following the release of a new iPhone.
From Tiernan Ray’s “The shares have been a dog, but don’t lose heart” posted in The Technology Letter last Friday:
The company had an absurdly good quarterly report on January 27th, and the shares responded by selling off the next day by about four percent.
Apple is now down almost two percent since the start of the year, at a recent $130.13, trailing the four percent gain in the Standard & Poor’s 500 index. Most of Apple’s mega-cap brethren have done better. Alphabet is up twenty percent, Tesla is up twelve percent, and Amazon is up almost two percent.
Have no fear, for the shares are actually trading in line with the prior decade’s worth of price increases following an iPhone introduction.
I’ve updated the chart of a decade’s worth of Apple stock-price increases, which starts from when an iPhone was introduced and shows the six-month and the twelve-month gains.
Moreover, in the accompanying bottom chart, the graph of twelve-month returns, the progress so far, represented in the thick magenta line, is kind-of trending the way the 2019 to 2020 price trend moved, which is highlighted in purple — royal purple, as in, the best. (That was the iPhone 11.)
My take: Apple is down more than 3% since Ray created these charts, and in premarket trading Tuesday it fell another 3%. Is OK to lose heart now?