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Originally Posted by oats
It's because psychology drives the market. But I won't bore you guys with Econ lessons.
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That's not true at all except in the short run - and Apple's margins missed estimates in consecutive quarters this year. Their growth has also not been as high as previous years, needless to say, but that too missed company/JP Morgan estimates. Any model of valuation you use will show you that Apple is undervalued by 150 minimum right now though. It fell because of what I already said, and because it was/is one of the largest holdings among institutional investors. They bailed early because they got in early and saw those signs to get out, and then it just snowballed. I expect it to rise to well over 550 by the end of this year...but keep speculating all you want, I'll be back to quote later.