Plummeting shares = rotten ApplesMarch 7 - 10am
After hitting an all-time stock price high in September with US$705.07 per share, Apple’s value dropped below the $400bn mark for the first time in a year this week.
And with hedge fund manager David Einhorn, who dropped his lawsuit against Apple last Friday, leading calls for company blood, investor Warren Buffett defended the Cupertino firm.
“I would ignore him,” said Buffett, who does not hold Apple stock, to CNBC news channel. “I would run the business in such a manner as to create the most value over the next five or ten years.
“You can’t run a business to try and run the stock up every day.”
CEO Tim Cook has been the first to show his displeasure at the current situation, insisting he “doesn’t like it either.” But as with Cook’s philosophy geared towards the long-term, Apple’s fight back appears imminent.
The company suffered a further blow this week, when the presiding judge in Apple’s patent-infringement case with Samsung slashed the awarded damages by US$450m.
With Samsung’s new Galaxy S4 only days away from release, Apple HQ will no doubt be first in line for the product – in an attempt to form a rival strategy to reinstate itself as a dominant force in both the tech industry, and the world.
Should Apple be worried by it’s declining stock? Is the long-term plans of Tim Cook enough? Tell us your thoughts below