Apple Shares Rolling Downhill

From BusinessWeek
For the better part of last year, a bet on Apple stock was a sure thing. Propelled by seemingly unquenchable demand for iPods, iPhones, and Macs, Apple shares surged to a record 199.83 on Dec. 28, after starting the year at 83.80 on Jan. 3. Analysts nudged price targets ever skyward; Piper Jaffray's (PJC) Gene Munster said Apple stock could reach $250 a share in 2008. By the end of 2007, Apple's market value had swelled by $100 billion.

But since the start of the new year, Apple's stock has hit an air pocket, spiraling $75 from its high point and giving back two-thirds of the gains it made in 2007. It closed Feb. 12 at 124.86. Part of the slide can be attributed to disappointment with products unveiled at the annual Macworld Expo in January. In the two days after Jobs announced the ultraslim MacBook Air, movie rentals through iTunes, and software upgrades to other products, Apple stock fell more than $19. By contrast, the shares gained $11 in the two days after Jobs announced the iPhone a year earlier.

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