Ask an expert: Apple's stock continues to struggle

MSN Money's Charley Blaine explains the recent stumble, and when the right time is for investors to get into the stock.

By MSN Money Partner Feb 11, 2013 1:09PM
Since reaching a high of $705.07 on Sept. 21 of last year, Apple's (AAPL) stock has tumbled more than 30%. In fact, Monday's price of $482 already represents a recovery from a recent low of $435 reached on Jan. 25. What's the reason behind the market darling's fall from grace?

In this video, MSN Money's Charley Blaine explains Apple's recent price tumble and discusses the right time for investors to get back into the stock.
Many have blamed the overall weakness in Apple's stock on the fact that the company, under CEO Tim Cook's management, is no longer the same innovative, groundbreaking technology company that it was under legendary co-founder Steve Jobs.

The Apple Inc logo is displayed on the back of the new MacBook Pro David Paul Morris Bloomberg via Getty ImagesBut there's much more to it. As Blaine explains, the company has run into several real-life problems, from manufacturing to supply issues.

Many of these problems, including some embarrassing glitches, have been becoming apparent in the past several months and in the company's recent quarterly release. While Apple beat Wall Street's earnings-per-share estimates, its gross margins were weak, as was guidance for the current quarter.

And as Blaine explains, another problem was that the stock's price was bid up too high. Once hedge funds realized the troubles Apple was running into, they did not hesitate to dump the stock.

What's next then? Can Apple return to its glory days? In the video, Blaine points to several ways Apple could improve not only its operations but also investor confidence. He also recommends a good time to start buying again.

The discussion about Apple's stumble and what it can do to regain lost ground continues over in MSN Money's Facebook community.

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Tags: AAPL
36Comments
Feb 11, 2013 3:02PM
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The last year of Bush the federal government spent 2.9 trillion (about 240 billion deficit)

The last year of Obama's first term the federal government spent 3.75 trillion

A difference of 850 billion or .85 trillion dollars

Obama's deficit spending 1.3 trillion.

 

So spending up 850 billion, defiict up 1050 billion.

Is there a relationship there?  Obama says we don't have a spending problem.

Spend up about 30 percent in 4 years!  Is your pay check up by 30%?

 

Think about it.

Feb 11, 2013 4:18PM
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I wouldn't worry about Apples' viability or stock struggles, it can survive anything people love the product, however can humanity survive idiots like this:

 

CNN afternoon anchor Deborah Feyerick asking if global warming played a role in the East Coast snow storm and the upcoming pass by of asteroid.

 

There you have it folks, an asteroid coming close to Earth is due to global warming, and "warming" caused 3feet of snow to get dumped on the East Coast!! HAHAHAHHAHAAHAHHAHA!!

 

God how you democrap leftist whackjobs just push the STUPID MORON envelope to new heights hehehe, oh and let's not forget maxine waters wondering why the Mars Rover didn't go up to the American flag when it landed, that blithering idiot thought we landed on Mars, instead of the Moon!!HAAHHHAHAHAHAHAHAHAH!!! AH!!HAAHAAHAAHAHHAH

 

Hey America you voted for these idiot representative democrapic filthy Marxists, you watch these idiot newscasters on these leftwing loony newscasts, which if you look at the ratings 3 people watch, if that, so did you expect anything more than what you got? now just wait for the new mid class taxes comin' right 'round the corner, we could've been saved from all this but you're all gonna burn instead, well as long as you leftwing fckin' pigs burn with the rest of us, makes me feel good!!!

Feb 11, 2013 2:42PM
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Itunes and the whole proprietary hardware model is going to be the DEATH of APPLE!!!  GOOD Ridens!!!
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It wasn't innovative or ground breaking under Jobs, either.
Feb 11, 2013 5:55PM
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So basically all investors (gamblers) are at the mercy of hedge fund managers and their daily manipulations....FRAUD BEYOND BELIEF!
Feb 11, 2013 8:05PM
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Will Apple find itself in a fight to the death against open technology? It happened when Apple first stole the Mac operating system from Xerox and then began to compete with Microsoft in a proprietary verses open architecture war. Score Microsoft 1 Apple 0, Apple was almost dead. Fast forward Jobs modifies the Sony walkman, puts music on a chip and calls it an ipod. Apple 1 open 0. Then Apple comes out with the iPhone then android comes out on dozens of other phones. Apple market share declines. Score Android 2 Apple 1. There is not much that Apple does that is revolutionary, most of it's technology is evolutionary or stolen from another developer. Guess they haven't learned that you should license your operating system as much as possible as fast as possible to grab as much market share as you can. Next comes cheaper and better and Apple almost dies again. Sell APPL short.
Feb 11, 2013 8:11PM
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Apple needs a swift kick !   Bring some good paying jobs back to America !

 

First thing I would do if I was Tim would be hang a big sign at the next production meeting, Steve Jobs was a **** !  He went to far to many goat sacrifices !

Wristwatch ? You must be kidding ! Apple better work on the idontwork Phone! I have been with Apple i Phone forever, So why do I hate them ? battery life really sucks bad ! A hotswap battery DUMMY !

No memory card !Why not ?  Give me an extendable antenna, Connection is what it is all about ,Free heavy duty case , I have been complaining about this for years ,I dont give a damm if it feels good in my hand I want it to WORK!! I like the operating system . or did until they put the camera backdoor in so the government can shut your camera off Screw Apple

My complaints are an easy fix, DO SOMETHING!!! Steve Jobs did not do it , He lost his edge years ago.  Let me know if I need to come up there ! There will be changes !

Feb 12, 2013 2:59PM
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All you Republican, Libertarian and Teabagger imbeciles wanted free markets, free trade, Capitalism gone wild, unregulated everything and rampant Anarchy,.... YOU GOT IT!

 

NOW GO DIE YOU GOD HATING, ANTI-AMERICAN MOTHER PHUCKING AYN RAND WORSHIPING IMBECILES!

Feb 11, 2013 6:08PM
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Getting quite bored Reading articles about Apple everyday...

 

5 articles on the "Front Page" mentioning or touting Apple (Appl)..

 

Very Boring and not very innovating by MSN Staff...

Feb 12, 2013 9:59AM
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Yeah right. In might, it could, I have absolutely NO idea is what this Wall Street zero should have said. 
Feb 11, 2013 2:41PM
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I think that, if Apple releases a true TV -- Apple TV -- and it is reasonably priced, AND it has 4K technology, then their stock will get a bump.  (For you 4K haters out there:  currently, there is active and passive 3D.  Passive is cool because the glasses are light, while active is cool because the image is better.  You only get 480P or so per eye with passive 3d, which is terrible.  With 4K -- and existing Blu Ray players -- you can watch passive 3D where you get 1080P per eye.  Big difference.)
Feb 12, 2013 10:05AM
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A Communist Chinese sweat shop Gestapo-like whore house in indeed what AAPL truly is. Too bad all of you nerds have no stones nor guts to call out AAPL for what they are. 
Feb 11, 2013 4:15PM
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Like all the thumbs down on the comments from the die hard Apple dorks. Get it through your heads geeks Apple was cutting edge but now just makes a few minor changes and resells you the same product you just bought under a new number.  Wow ground breaking!!!!!!!!!!!!!
Feb 11, 2013 3:13PM
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Well What do you expect. Apple software is garbage and now the greatest salesman ever to walked the face of the earth is dead, no place for Apple to go but down. The masses are awaking from the trance Steve held on them. LOL
Feb 11, 2013 3:12PM
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I hope Apple crashes! This is just a PR stunt to get out of paying their taxes AGAIN!
Feb 11, 2013 8:51PM
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Bounces in Apple Stock ??? Charlie go back to the bar ! Are you nuts ? Keep offshoreing your production and design ,hoard all that cash ,your gonna need it Apple   150 or less Short Apple now !!!

 

Maybe that will wake them up !    Apple is garbage hasnt been any inovation in years .

Ohhhhh they will bring out an S model soon . Do you know what S stands for ?

Its S***  

 

 

Feb 11, 2013 6:13PM
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Anyone driving, through 3 Feet of snow without a plow or an emergency reason...

 

Really looks kind of stupid...Probably have little wee-wees too..

 

We can get through 2.5 feet with our small 4X4 Blazer, but very seldom do it...

We also get well over 20 miles to the gallon...

 

What does a Hummer get ???.....Hmmmmmmmmmmm??

Feb 11, 2013 2:43PM
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I know how Apple can rebound from this...quick launch the Iphone 6.....hahaha.
Feb 11, 2013 2:29PM
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Apple is worth $10. They've got nothing that can't be gotten elsewhere and besides they're a communist Chinese company.  
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