Apple shares have soared since they release earnings back in January. Analysts set price targets from $750 per share up to $1000 per share. The charts went parabolic which led some to question the sustainability of the growth. However, the media had a frenzy and got people drinking the punch.
Apple then released its most recent quarterly earnings and once again they rocked it! Since that day, the stock has steadily declined roughly 80 points. Where are the headlines? Where has all the hype gone? Where were the "responsible" media sources to warn of a pullback?
It is very typical for financial news sources to help inflate a bubble, and often entice people to jump on the bandwagon. It is even more typical for the same sources to dump retail investors off at the top and offer nothing to them as they watch the bubble deflate.
Apple is a great company and they may very well hit the aforementioned price targets. There is no reason to believe otherwise without some unforeseen damage to their model. But the moral of the story is to try and avoid believing that the media is doing anything but "selling" you a story. When you buy stock in a company, someone is selling on the other end. It is always best to take a step back from the headlines before jumping in.
Sean
