Unimpressed Wall Street continues to sell shares of Apple after Tuesday's presentation
During mid-day trading on Wall Street, Apple’s stock was down $25.48 to $469.17, a loss of 5.15% It opened the day even lower at $467.01 and wound up ending the day close to that at $467.71, down $26.93 or 5.4%.
That follows Tuesday’s 2.28% drop in the stock to close at $494.64, a loss of $11.53.
The stock drop is significant, as it’s cost Apple $34 billion in market cap value over the past two days.
On Tuesday, Apple’s market cap was $459 billion. By the end of the trading day on Wednesday, it was at nearly $425 billion. Compare that to $627 billion the day the iPhone 5 launched and $656 billion the day after it was unveiled in 2012.
Apple typically sees its stock price drop around a month after it unveils new products, but an immediate drop is rare.
The sell off comes as Bank of America, Piper Jaffra, Credit Suisse and UBS downgraded Apple’s stock to “neutral” from “buy” on Wednesday, concerned with the price of the new smartphones, especially in emerging markets like China and India, and the lack of an innovative new product like a smart TV heading into the fall.
Shareholders started selling the stock during Tuesday’s presentation, with investors clearly not wowed by the new devices, with a brightly colored version, branded the iPhone 5C aimed at the younger and more budget-minded consumer. The pricier iPhone 5S comes in gold, silver and space grey.