![23875ffe-1d12-11e6-adb5-434ea0a0a6b9[1].png](https://i.imgur.com/pBNDR5p.png "23875ffe-1d12-11e6-adb5-434ea0a0a6b9[1].png")
http://www.9news.com/news/nation-now/apples-loss-is-four-times-worse-than-enron/204859165
>Apple's market losses have hit epic proportions - explaining why big investors like Warren Buffett and Carl Icahn disagree if the stock is damaged goods - or a steal.
>Investors have seen nearly $240 billion in wealth evaporate in their Apple holdings since the stock hit its closing peak on Feb. 23, 2015, says S&P Global Market Intelligence. >That's a staggering loss rivaling some of the biggest implosions in stock-market history - even exceeding stock investors' losses on failed energy firm Enron, which many think of as the epitome of a terrible investment.
>Investors simply looking at Apple's price, which has fallen 29% from its all-time high to $94.20 a share, might miss the gravity of the decline given Apple is one of the most widely followed and owned stocks by individuals and professionals alike. When a company once worth more than $700 billion drops this much, it's a massive event that signals how the company is transitioning to different owners with different objectives.
>Some hope the big losses in Apple's market value will attract back investors who see it as a value.
>"Yes, we're in a funk (with Apple stock) but you have to look at it long term," says Anil Doradla, analyst at William Blair.
...
>The sheer amount of stock market wealth erased by Apple is staggering as measured by:
>* Exceeding market losses at Enron. The Texas-based energy firm, which once was also a darling with many professional and individual investors, was worth $60 billion at the end of 2000 before it imploded following an accounting scandal and stock investors were wiped out, according to research from Harvard Business School professors Paul Healy and Krishna Palepu. That means Apple investors have lost four times more in paper losses than investors lost in all of Enron stock. Doradla points out, however, Apple created much more stock wealth during its ascent than Enron, too.
>"Apple created six to seven times more in equity value than Enron ever created, so comparing dollar amounts of decline (is) probably not fair," says Tavis McCourt, analyst at Raymond James. The other big difference is fraud and faulty accounting triggered the decline in Enron and resulted in the company becoming the sixth largest bankruptcy in U.S. story, says BankruptcyData.com. Apple is a perfectly sound company, on the other hand, and has $233 billion in cash and investments. "What Buffett's and Icahn's investment before him show is that Apple's historic valuation creation over the past decade is built on a solid foundation of cash flow, with an outlook that many reasonable people conclude can continue to grow over the long term," McCourt says.
>* Ranking among biggest wealth destroyers. The $240 billion lost on Apple makes it the fourth largest market value loss among current members of the Standard & Poor's 500 from their all-time highs to now, according to a USA TODAY analysis of data from S&P Global. Cisco Systems (CSCO)'s $419 billion loss from its dot-com bubble top on March 27, 2000 remains the largest amount lost. But Apple's loss even exceeds that on Exxon Mobil (XOM), which has taken a hit from the implosion of oil prices. Shares of Exxon are only down 13%, or $71 billion, from its all-time high in July 2014.
>* Depressing the Dow. Apple has been an unwelcome drag on the Dow Jones industrial average ever since it was added March 19, 2015. During that time, Apple has dropped 26% while the company it replaced, AT&T (T) has jumped 16%. Apple's anchor is a big reason why the Dow is down more than 2% since March 2015, with the stock accounting for about a fourth of the Dow's point loss since joining the average.
>* Recalling past bubbles. It's difficult to compare the Apple implosion with other manias since it's one company while the Internet bubble was characterized by hundreds. But the amount of money lost on Apple’s stock is 20% of the $1.4 trillion value of the Internet bubble near its peak, measured by the USA TODAY Internet 100 on March 2000 of the 83 members with valid historical data. It's important to note that unlike many Internet companies, Apple is highly profitable unlike many dot-coms which imploded. Apple reported a profit of more than $50 billion over the past 12 months.
>Investors can't deny the size of the losses, but many analysts insist it's an opportunity not the start of something worse. The average analyst thinks Apple's stock will be trading for $124 a share in 18 months, which is 31% potential upside. "Its not the first time (Apple stock has) been this inexpensive relative to near-term earnings," McCourt says. "When this last occurred, the optimists were duly rewarded."
>LARGEST MARKET VALUE DECLINES FROM ALL-TIME HIGHS*
>Company, Symbol, Lost from all-time high to now ($ billions)
>Cisco Systems, CSCO, $418.2
>Intel, INTC, $354.9
>General Electric, GE, $324.1
>Apple, AAPL, $236.2
>Microsoft, MSFT, $211.4
>Source: S&P Global Market Intelligence, USA TODAY
>* Based on intraday highs
Good post. I'll bite. Shit. 'Meme Magic' is a total crap phrase, but when applied to certain market trends it is an inescapable fact. General (taken from several big-user properties) opinion of a thing trends towards the negative, and the reality is that the thing the general opinion is concerning decreases in value. Products such as movies and television are greatly affected by what Facebook, Reddit and others are saying about them. It dosent have to be true, but the arguments against have to be caustic and with enough truth to cause a visceral effect on the end user. Honestly a shit theory but it is a touch on every marketing strategem Ive ever heard of. It seems that certain companies just cannot rise to the reality that speging basement-dwellers making dubiously factual infographics have more impact on the markets than thier 400 million dollar marketing team. Literally $0.02, please disregard.
>>45427
>'Meme Magic' is a total crap phrase
No it's not.
>>45472
it is to every non /pol/ user
>>45473
May kek smite thee.
It's pretty simple. Apple hasn't had the kind of leadership it needs since Jobs died. Jobs was, by most accounts, a shitty person, but he was also a marketing genius who turned Apple into a premium brand. And now that brand is eroding.
>>45473
I don't even use /pol/.
It's a fun phrase.
>>45414
All I can say is Magic Mouse and Apple Pencil Charging positions. Literally the pencil sticks out like a dildo and the mouse is on it's side or back, in a vulnerable position, whispering, "Take me gently Senpai."
http://i.imgur.com/0qHbrSX.jpg
>>45492
>http://i.imgur.com/0qHbrSX.jpg
So innovative. I bet they got threatened with lawsuit from Samsung if they had an internal pen holder. Hell the S pen uses the licensed wacom stylus and doesn't need charging.
So, buy?
>>45550
That's what Warren Buffet says. Carl Icahn disagrees.
There have been 3 miracles in Apples lifetime.
The Lisa, which they failed to capitalize on.
The iPod with itunes, which they did well with but are slowly losing ground to with other stream services.
And the iPhone/smartphone revolution
Looks like people are getting wise to the iPhone being overpriced bullshit that can't punch that high with the competition. Also consumers are getting sick of buying the latest smartphone model. So can they really pull out a fourth miracle? Investors are acting smart for once.
