Finicky investors weren't as high on Apple
yesterday as they have been in the past. Apple's share price dropped 6.4 percent on Wednesday, representing the company's biggest single-day drop in four years and shaving $35 billion from its market cap. What gives?
That's a good question, and there are no concrete answer to be found, only theories. One of them comes from Mercury News
, which believes it has to do with dividends. In order to avoid possible tax hikes on cash as a result of the so-called "fiscal cliff" that's around the bend, companies have already started dishing out dividends for next year. Apple hasn't, however, so the theory goes that investors are taking their profits today to avoid a larger tax bill tomorrow.
Another theory has to do with an overseas rumor suggesting the Cupertino company is slowing production heading into the first quarter of 2013, a move that could ultimately hurt Apple's earnings.
Yet another one has do with Apple's slowed growth. There's a consensus that recent product refreshes haven't been as innovative as in prior years. After transforming the mobile market with its iPhone, iPod, and iPad products, Apple has created a tough act for itself to follow.
Apple's slide in the stock market isn't new. After hitting an all-time high
back in September, Apple's share price has since fallen to a five-month low
and then a six-month low