Stock watch

Mac Format - - APPLE WORLD - Clem Cham­bers, CEO of ADVFN, the lead­ing stocks & shares web­site

The old joke was that Ap­ple was the NASDAQ, be­cause not only was it the star of the tech-heavy in­dex, it re­peat­edly be­came so large that the in­dex had to di­lute its weight­ing.

Those days of tremen­dous share price ap­pre­ci­a­tion are over. It is hard for Ap­ple to dou­ble, let alone be a 100% so-called ‘10 bag­ger’. Ap­ple’s mar­ket value of $500 bil­lion is $71 for ev­ery hu­man, which is what a bil­lion peo­ple live on for two months. As such, the sheer scale of Ap­ple ver­sus the world is a limit of sorts.

Ap­ple is now a volatile version of the NASDAQ, and over the slump and rally of sum­mer and au­tumn it has un­der­per­formed the gen­eral in­dex. That feels like new be­hav­iour be­cause if Ap­ple had tracked the NASDAQ since 2009 it would be at $40 a share, not the cur­rent $120.

The mar­ket in gen­eral may now be in a bear mar­ket, so un­less Ap­ple pulls a rab­bit out of its hat, 2016 could turn into hard work for the stock price.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.