Apple passed the milestone as its’s shares fell by around 2% monday morning and the decline continued through the day to a closing price of $420.05, a drop of 2.4 percent from Friday’s closing price. At that share price, Apple’s market cap is now $394.45 billion. This is the lowest valuation for the company since January 2012 which witnessed a stellar price rise just after a bumper quarterly earnings call by Apple. With the current valuation Apple is no longer world’s most valuable company as Exxon Mobile Corp. has a current valuation just above that of Apple’s at $399.62 billion. Analysts predict that Apple stock will decline further before it makes a comeback.
Tim Cook, Apple’s now CEO, said that he “Didn’t like it either” when he was questioned about the rapid decline of Apple’s stock price in the last quarterly earnings call. He was advised by Warren Buffet to buy back stock and create better value for the company as the moment is right and as Apple is having enough cash reserves to spend wisely.
Back in 2012, Wall Street analysts loved Apple stock to such an extent that the race to grab Apple’s shares pushed the stock to an all time high of around 700$ per share. The last time Apple share price was below $400 was way back in December 2011 and we might witness that price really soon if the downward trend continues for Apple.