How low can they keep on falling? Both had risen remarkably hitting an all time high late last year before making a massive free fall. Apple and Google had gone up to a high of about $200 and $750 respectively. Now they are both trading at $122.25 and $433.35 since the close of trading last friday.
Both had lost about 40% of market share since December. A huge market cap had been shaved off in less than 3 months. Thats crazy isnt it?
Even the Nasdaq and Dow didnt shave as much if you look at the comparison graph in image 3. How much more are they going drop off before it starts to rise? It certainly had not dropped to the point where they started. Apple was less than $10 some 5 years ago and look at where they are now with iPod and iPhone.
I must admit the recorrection is long over due as they had risen quite a lot as both the Dow and Nasdaq had dropped substantially for the past few months initiated by the sub-prime issues. Both companies including the market at large were certainly overvalued last year and the retreat was imminent but the free fall was way larger than the retreat on Dow and Nasdaq.
In short, whatever that comes down must go up. While there may be uncertainty in the short to mid term for both companies, but for the longer term, its great to be holding onto their stocks. What do you think? By the way, I m not a stock trading expert nor am I working for them....