Jim Cramer's take on Thursday's bloodbath (video)

From Jordan Novet's "Tech sell-off pushes Nasdaq to steepest drop since June 2020" posted Thursday on CNBC:

Cloud companies, e-retailers and household tech names got hammered on Thursday, wiping out hundreds of billions of dollars in market value and pushing the Nasdaq Composite to its worst one-day plunge since June 2020.

A day after the Federal Reserve raised its benchmark interest rate by a half point in a bid to stem rising inflation, investors sold out of the part of the market that’s generally viewed as the growth driver, on concerns that the economy is in for some dark times ahead.

Big Tech suffered a massive sell-off, with Amazon dropping almost 8% and Facebook owner Meta Platforms off about 7%. Among other big names: Apple fell nearly 6%; Google parent Alphabet declined about 5%; and Microsoft shares slid 4%. Overall, the Nasdaq plummeted 5%.

Investors were particularly down on e-commerce after Shopify, which ballooned during the pandemic by helping physical retailers go digital, reported disappointing first-quarter earnings and revenue. The stock tumbled 15%. Ebay and Etsy also suffered double-digit drops following their earnings reports.

Cue the video:

My take: Is Apple, the company, worth less today than it was on Wednesday?

21 Comments

  1. Michael Goldfeder said:
    Ex dividend today and Apple is still taking shares off the market and saving the payments on those shares! I’m thinking Warren is still a buyer at these levels too and wants those dividends in his bank account!

    1
    May 6, 2022
  2. John Konopka said:
    I understand Apple is not a fan of dividends, still, I wish they would keep the yield closer to 1%.

    4
    May 6, 2022
  3. Bob Goldstein said:
    1% dividend would be good for me. Anyone have any projections for when Apple will go to 1% and upward from there. This very long term shareholder has built into my DNA to not ever sell shares if I can help it. Living on dividends has always been my plan. I am always under pressure at home to have access to our cash that is tied up in shares. Higher dividends would make a huge difference in our cash flow. It is getting increasingly difficult to explain why we have our money locked up in a stock that I don’t want to sell. Long term benefits are a hard sell to those of us who don’t have years to wait to enjoy the fruits of our investments

    2
    May 6, 2022
  4. Jerry Doyle said:
    Brothers Joe B or Robert Paul: Would one of you gentleman denote your estimate in percent what Apple’s long term buyback program has contributed to Apple investors holding shares in the company? I saw somewhere once a percent in the mid 3% range. In summary: I welcome receiving information on the long term percent of return (to date) to Apple investors from the company’s buyback program.

    0
    May 7, 2022
    • Robert Paul Leitao said:
      Jerry: I’m not sure what you mean. Please advise. I did see a chart yesterday on the mix of share ownership.

      0
      May 7, 2022
    • Bob Goldstein said:
      Excellent question, This is exactly what I have been trying to determine. I have taken it basically on faith all these years that the buybacks have been worth all the billions that have been been spent by Apple. I would like to see some real facts if possible

      0
      May 7, 2022
    • Robert Paul Leitao said:
      Jerry: I just posted links to three different sites with information on Apple’s current ownership mix in the Apple Share Price Performance channel in the Apple 3.0 Slack group for easy subscriber reference.

      0
      May 7, 2022

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