Apple market value getting worse due to Hedge funds

Posted by Chris Bell February 16, 2013 0 Comment 351 views


Apple Company, one of the biggest smartphone companies in the world, announced today that the main reason why their company suffered from a plunge during the last few weeks is due to associated hedge funds. The company claims that this is the main reason why the company has been losing their market shares and value over the past few weeks. Some of the most important stock pickers such as Leon Cooperman and Thomas Jones, ended up unloading and getting rid of Apple shares worth of millions of dollars during the past few months.
Shares of the company reached record levels during September 21 and this was great news for many investors. However, the company shocked everyone when shares started decreasing below 24% due to increasing competition. The company also suffer from low profit margins because repetitive products that the company was starting to get bored from. Many business experts believe that the main reason why this happened to Apple is because the price of their market value increased too quickly.
This was definitely very disappointing for shareholders who invested in the company during the last quarter; Apple has lost more than 25% of their market value so far. Companies such as Omega Advisors ended up dumping almost all their entire stake when this took place, according to their disclosure form with the SEC. Other companies that did the same thing include Mindich and Farallon.
However, it isn’t all bad news for Apple executives as most of them left their position during the profitable era of Apple last year. For now, it is obvious that Apple is doing simply everything they can to regain their position again especially that Blackberry has been receiving a lot of hype during the past few weeks. It isn’t clear now on whether the company is going to sell or create new products in the future or not. There have been a lot of rumours in the past week that Apple is actually planning on creating a new smart watch. This comes after the company hinted that they are planning on releasing a new TV that has extraordinary features that aren’t found anywhere else. It is essential that the company does everything they can or otherwise they will be completely gone from the technological market. Keep in mind that Apple has been one of the most important competitors in the technological market over the past five years.



About Chris Bell

Chris Bell is an investing reporter for GDP Insider. Chris covers financial markets and Wall Street, concentrating on developments affecting individual investors and their portfolios. Chris is also over consumer reporter and covers a wide variety of issues ranging from housing to immigration to urban poverty. Chris graduated from the University of Scranton with a degree in Communication and Philosophy. Chris's diligent investigations earned him the honor of being named "Best Reporter" once by the Headliners Foundation of Texas and once by the Houston Press Club.

View all post by Chris Bell Visit author's website

Write Your Comment