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Apple

Apple’s pips squeak as stock slumps 6%

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By John Glenday, Reporter

December 2, 2014 | 1 min read

Apple has suffered its largest single day fall in stock for three months as it slumped by six per cent during US trading, brought down by a wider slump in the technology sector.

The day started promisingly for the iPhone maker with its stock rising from $118.76 at the open to $119.25, these gains were swiftly wiped out during a later collapse to $111.27, equating to a loss in value of more than $30bn.

A sell off was precipitated by investment bank Morgan Stanley which abruptly changed its outlook for the firm’s prospects from ‘market weight’ to ‘underweight’, reducing its holding from four to three per cent.

This prompted other investors to follow suit although the price later pegged back their losses somewhat to $115.17 prompting many to speculate that the sell-off was more likely a product of profit taking amongst shareholders.

In a statement Morgan Stanley said: “The stock has nearly doubled over the past three years and our optimiser simulations have consistently recommended a modest reduction.”

Shares in Apple have risen a healthy 46.7 per cent so far this year.

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