The days of Apple’s share price being worth more than the gross domestic product of Taiwan are coming to a close.
According to Northern Voices, the share price has been falling for eight straight weeks and could go a lot lower.
The cocaine nose jobs of Wall Street believe that next year there is going to be a rise in capital gains taxes which should knock a lot of value out of companies like Apple. This means that shareholders have been dumping the market favourite before it loses much more cash.
Apple shares reached $705.07 a share in September but since then it has lost a quarter of its value. The company is still currently worth about $493 billion.
Some analysts still say that the company is worth $833.90 a share based on estimates for growth over the next five years and StarMine’s expected growth rates for several years after that, but that figure is somewhat questionable and based on Apple’s own projections which could be as deluded as a Mitt Romney campaign manager’s projections in Ohio.
Part of the reason is that Apple is assuming that will continue to win in the smartphone market, just at a moment when the gloves are expected to come off.
Apple has been unable to counter Google’s Nexus 4 which, at $299, has proven that people will dump Apple if the price is right.
Apple is also unable to compete with the Amazon Fire HD which is available for little more than the cost of manufacture.
This means that some are predicting that Apple could be facing a brutal price war which its own model will not allow it to win. Over the next few months this will become clearer to shareholders who wills start to vote with their feet.