The stock price of the most valuable US company went down more than 6% on Wednesday, as more than 17 million shares changed hands. This pushed the company’s trade volume beyond the average of 21 million shares recorded during the past 50 days, Reuters reports.
Obviously, this will raise concern among investors, and analysts were quick to reply with reasons for the decline. The answers? Some say it’s Apple’s tablet market share (see the IDC’s updated forecast for 2012 and 2013), while others cite reports of higher margin requirements at clearing firms. Also, some investors are concerned about uncertain tax rates on capital gains in 2013, prompting them to sell.
“Depending on what happens with the (U.S. fiscal negotiations), rates could rise next year or they could stay the same. They will not be lower, so if you’re an investor who has seen gains in Apple, it is better to take those gains this year rather than next,” said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago.
However, the overall picture is still looking good for Apple: its stock price rose 36% this year, but currently shows an almost 22% drop from its $705.7 peak level recorded on September 21.
Battle believes Apple needs to add another new product before its stock price will rise again. If Gene Munster is right, Apple will indeed launch a new product, but only next year around the holiday season — the iTV. Meanwhile, the company is preparing the launch of the iPhone 5 and the iPad mini in an additional fifty countries.