Autumn is that time of the year when people begin snapping up Apple Inc.(NASDAQ:AAPL) devices. It is also the time when investors do the same with Apple’s stocks, anticipating another blockbuster holiday season from the company.
however, this year, although Apple’s iPads and iPhones do not seem to have lost any of their magic touch for holiday shoppers, its shares have headed straight for the discount rack.
Should Investors Buy AAPL After The Recent Slump? Find Out Here
Apple’s shares plunged another 3.63% in Thursday’s session, after slumping 3.50% in Wednesday’s session. They outpaced a bigger decline in the market set off by indecision of the shareholders about how the outcome of the presidential election will impinge on consumer demand and taxes for the types of products sold by Apple.
During the presidential campaign, Obama had proposed increasing capital gains tax for people having incomes more than $250,000 to 20% from the present rate of 15%. His re-election on Tuesday night may have prompted some shareholders to unload shares in estimation of a wider sell-off in stocks before an increase in tax takes place.
Apple shares owners would have a strong reason to be afraid of higher taxes on capital gains. Apple stocks have appreciated drastically since the year 2005 when they were about $35 each. They started 2012 at $411 and topped more than $700 in late September. The plunge on Wednesday has added to the already grim situation for Apple shares since the past few weeks.
The decline has gone through a whole sequence of seemingly unrelated events. It includes a wider than normal revamp of its product like that is believed to harm profit margins in the near term and an exceptional shake-up in senior ranks of Apple.
Piper Jaffray analyst Gene Munster feels that is has been a pretty rough for Apple in recent times with too many bad news.