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What's Up On Wall Street - Matt Nesto, Yahoo! Finance

Nov 19, 2012|

What's Up On Wall Street - Matt Nesto, Yahoo! Finance

Transcript - will not be 100% accurate

Yet another down day on Wall Street like every day -- in the stock market futures are positive at 930 or 915 and now the markets down. Down Dow down 51 points NASDAQ down sixteen points S&P is down five. Senior US treasury also one point 586. Oil is -- buried 85 cents to 8630 Eackles trading up now 180 to 1790. But the market's down but not nearly as much as Apple Stock is down Apple Stock has gone from a high of 705. Dollars a share believe that isn't September. It is now trading at 516. Dollars a share were joined by Matt Nesta though from Yahoo! finance has been following this story Matt good morning welcome to the show. I -- you. What's up with apple -- or should do what's what's causing all the problems -- down another nine dollars today. Yet decided -- -- -- and it's just get hammered we've seen about 200 billion dollars. Worst of market value market cap disappear over that period of time the stocks -- About 25%. From that 705 dollar level -- just noticed. That the actual market -- of apple has now slipped below 500 billion dollars so the stock is definitely under pressure really is all about. Slowing growth into the future we've known missed the ball large numbers would suggest that you can't have. 6070%. Growth rate for apple more and we've seen just more competitors adamant that there. To that marketplace in their dominance. Is you know being threatened to. Is it now -- priced earnings ratios eleven to one this is now something where you say gee this is a value stock it's got a 2% dividend. Eleven to one priced earnings ratio. Starts to look pretty attractive from a valuation perspective. Probably but not for me because I don't try to -- I think has definitely not -- -- -- -- core holding. In a lot of fun it's under represented in certain funds as well. But it's over represented most of he didn't own apple you're dead in the water for the last. Three years. And there's a lot of people that ought to come a bit and here we are looking at the end of the year at the end of a battle week in a month. And -- -- -- people like well we could you know with a tremendous thing back in the average -- again he just don't wanna get in the way this thing right now. All right well Matt thanks for your time I do appreciate it. As always guys and open about on or not there yet pitcher is Matt nest on Yahoo! finance joining us in June Apple Stock right now trading at. 516. Dollars it's down almost a 180 dollars from a -- I remember sitting in this room. Back in September new iPhone fives coming out stocks go -- -- 700 dollars a share. And you set it. Use set right across from me and you said this would happen and a lot of instantly you are not married to get the -- iPad mini coming out all this other stuff. My goodness you really are genius SARS you know go have not days -- would I. Would I sensed was that. The were going to start to receive more competition in tech companies go through this -- would happen is if you look at the in if you look at Google if you look at Microsoft. They they go crazy -- with their stock price Google went through the same type of activity. And then it consolidates. Right now Apple Stock has jury is down a 180 dollars off of the tie it to 516. Dollars a share he just heard Banesto say it's not done yet and there's evidence to that affect as lot looking at some numbers. Hedge funds began unloading millions of shares of Apple Stock back in September this is and and what happens is. Once a year the -- have to report what their buying and selling. This was started to get reported last night. And I was looking at third these reports so they hedge funds are getting out of it it's very difficult for the mutual funds to divest of this stock because of mutual funds those that like who's gonna buy the shares -- if you wanted to sell. Let's say you're vanguard fidelity American -- a large mutual fund investment company. And you all you might -- 203050. Million shares of apple. You can't unload the great because if you do you'll -- the stock and so. This is what we're seeing right now the whole large institutions are selling big trucks and. Stocks so what. Exactly is happening have these other tech companies. Say caught up a -- with the product lines or with -- is still understand the techniques would argue that they have not cut up but evidently they're catching up enough to be close. And if you look at nexus which is a Google product it's it it's the equal medicis have in tablet yeah yeah it's sells for a fraction of the price of the iPad and I think what people are doing is -- -- -- -- You know there's really not a lot of difference at least at the -- is not enough difference to go for the iPhone as opposed to the Samsung -- we can argue to the cows come home as to which. Which which phone is better right but I have done the same stuff well in Samsung is outselling the iphone's more than two to one. Because it's cheaper. And ends at same thing with these other tablets the next seven in the Kindle. A what what are they hundred you can get an older version for 99 dollars -- -- the new ones from 199159. For some album. Where -- -- got to spend what is his iPad mini 350 dollars or about 329. Dollar plus plus plus you know and and and that I think. Is where it -- meeting with some price resistance there is enough competitors. That our art -- infringing on their territory you go to Wal-Mart and you can get a tablet with an android system minute for seventy dollars. If you just wanna do. Like 34 different things -- a lot of people just use it like -- moment that big issues -- -- reading books and you don't need to spend 6700 dollars looked -- books and the Internet if that's -- using a tablet for and because it's the -- -- can carry around with you it doesn't matter what have what you -- humans -- go -- five -- be confusing for books and for the Internet but if you wanna connect basically your entire wife to one device. It's -- pattern at the iPad about him. -- You know we during the next segment were to take task text questions and emails. Might text number is 68680. By email address is barrier Armstrong at wrko.com. I want to mention you know get a lot of tax questions regarding investments and I tend not to answer those. On the air because I don't know enough about your background if you have an investment question. If -- curious what we're talking about Apple Stock right if you're curious what to do with your apple shares. It's hard for me to answer that on air but you can write me an email my email address is barrier Armstrong. At W mark GO dot com I just received an email. From my friend Kathy. And it's about Obama beginning a push for a new national retirement system that's our next topic here on the financial exchange.