To say this has been an eventful year for Apple would be an understatement. The company has been in the news for all the right, and sometimes the wrong, reasons. Yet, it is becoming difficult to doubt its ability to recover from a tough situation. At the tail end of last year, they lost their creative spearhead Steve Jobs. The impact of that loss was incalculable but Apple managed to take it in its stride, enjoying success the way it has become accustomed to.

Apple Stock On the Rise Again

However, a definite change from the previous years was the dip in its stock price. Apple has been a profitable enterprise over the last decade, what with the millions of smartphones, tablets and other devices sold annually. It was almost unthinkable to assume that the shareholders would lose confidence in the company and the market would react in such a way. The stock price had been plummeting for the past couple of months, losing around 28% of its value.

Any company which sees a patch like this would be desperate. If Apple’s stock prices were south of $50, a drop of 20% wouldn’t have affected their market capitalization. In this case however, Apple was trading well over $700 and expected to hit $1,000 a share before the end of the year. Well, obviously that didn’t happen instead the stock went into freefall. This was surprising given the fact that the stock price had risen by almost $300 in the first three months of the year.

Apple Stock On the Rise Again

 

It may sound ominous and you might be heading off to sell your shares right now, but just wait. This week, Apple stock showed clear cut signs of recovery. The stock price went up by 5% after Topeka’s market analyst Brian White commented that the current price was well below the level it should be. Apparently that was all the assurance the investors and shareholders needed. From that moment on, the stock price started climbing and went up by 5%.

While the drop in the stock price was surprising, this rise is actually astounding. Over the past couple of weeks, some of the top brass officials of Apple have sold off some of the stock they held. From a neutral point of view, this would signal there was something wrong with the stock and they expected it to go down further. Well, the rise in the stock price has all but quelled that notion entirely, leaving some industry experts scratching their heads.

The 5% increase in stock price over a day is peanuts when putting into perspective the value erosion over the past few weeks. There is no denying the fact that Apple needs some good news on the stock front. The iPad Mini and new iPhone ensure their sales are strong and the upcoming holiday season will add to their bottom-line. It is now a matter of a sustained rise in the price of Apple stock to erase any doubts anyone has about the company’s profitability once and for all.

 

[Images via 2space & itlounge]