Surveying The Wreckage; AAPL Plummets To January 2012 Lows And Still Going

Tyler Durden's picture




 

AAPL's after-hours loss in market cap is greater than the market cap of one BlackRock, Starbucks, Target, Costco, or Nike. Down almost 9% from yesterday's close, AAPL is trading down to January 2012 levels (off 35% from its highs) and is now notably less capitalized than the entire European banking system. Of course, this has had serious consequences for the major indices that are trading after-hours (and futures). Futures traded down to the day-session lows before closing but QQQ are now trading at 6-day lows in after-hours...and as S&P futures reopen they are gapping down a little more.

QQQ...

 

After the initial spike (thank you Johnny-5), AAPL is now getting ugly ready to test under $460 handle...

 

which has pulled AAPL down to January 2012 levels... notice the difference in volumes from the upside when we were last here - compared to the downside - there appears plenty of sellers left.. and the $443 to $30 gap looks like it will get filled...

 

and just as AAPL implied vol has been compressed with the rest of the market - we would expect a reaction tomorrow when we open - and for all those downside call sellers - happy to 'buy' the stock 'cheap' at lower prices if called away - enjoy...

Which might help explain the systemic compression in vol recently... as complacency in the AAPL options skew remained extremely high...

 

and AAPL is now well below (widest gap since August 2011) the market cap of European banks...(even lower now after-hours)

 

Charts: Bloomberg

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Wed, 01/23/2013 - 19:03 | 3180956 fonzannoon
fonzannoon's picture

Can someone superimpose Joe T's face on the deer in headlights?

Wed, 01/23/2013 - 19:09 | 3180980 kliguy38
kliguy38's picture

Try the "faces on the windshield" to be more accurate. Retail will try and step into this meatgrinder for another year before reality and billions in losses are finally realized. This will be a poster child for the end of the Supercycle......gl

Wed, 01/23/2013 - 19:55 | 3181151 nope-1004
nope-1004's picture

When AAPL touched off $700 and fell back a bit, it was after the Samsung lawsuit that I said on here that this was the top for apple.  Reason is because traders view tech stocks as having a shelf life.  Buy, exploit, publicize, create a frenzy, then sell.  Wash, rinse, repeat.  Palm, RIMM, Apple, next up is.....

I remember that ZH thread and I got junked for my opinion.  lol.  The worst part is that I'm not even a sophisticated trader!  So I can only conclude that many on here were long AAPL and got whipped.

AAPL longs got blowtorched, hey trav?

 

Wed, 01/23/2013 - 20:31 | 3181288 RedMeansGo
RedMeansGo's picture

Compression trade opportunity?  How long until 1 share AAPL = 1oz. Ag?

Thu, 01/24/2013 - 00:24 | 3181787 AlaricBalth
AlaricBalth's picture

In the morning, the pundits on CNBC will be attempting to downplay AAPL's after hours plunge, while at the same time they will be singing the praises of NFLX. To put things in perspective, I would hope that someone would have the cajones to point out, that in after hours trading today, AAPL lost in market cap (-48 Bil) the equivalent of NFLX's entire market cap (7.7 Bil after hours) 6.24x over.

Wed, 01/23/2013 - 20:36 | 3181305 Gamma735
Gamma735's picture

Wall Street always waits for the dumb money to pile in and pile in it did.  Now Wall Street will make a killing shorting AAPL.

Thu, 01/24/2013 - 00:55 | 3181832 GtownSLV
GtownSLV's picture

With so many highly levered mutual\hedge funds in this stock beaten down and bleeding out, a few big dumps in the morning could blow out the HFTs and poof goes the market until Ben's copter circles round and the PPT paratroops in. Also, technicals show a gap from $450-420 from last January needs to close. Looks like it will happen near term, just a matter of at what velocity.

Thu, 01/24/2013 - 08:26 | 3181872 Frozen IcQb
Frozen IcQb's picture

Feels good to see some vindication having called this drop following relentless months of retail abnormality.

Kudos to the many here that called it as well.

Wed, 01/23/2013 - 19:11 | 3180987 Supernova Born
Supernova Born's picture

Green shoots?

Nope, little green worms. Which, per the Scarecrow, nobody wants.

Wed, 01/23/2013 - 19:18 | 3181000 Supernova Born
Supernova Born's picture

So the FIRST big thing Job's successor does is the PRECISE thing Jobs said NOT to do.

How can anyone be surprised the "magic" is gone?

Wed, 01/23/2013 - 19:57 | 3181174 Karlus
Karlus's picture

Lincoln: Go to the theater they said.
Obi wan: train they boy, they said.
Tim cook: make an ipad mini, they said

Wed, 01/23/2013 - 21:15 | 3181385 unrulian
unrulian's picture

Didn't Israel invest in Apple?

 War in 3...2....1....

Wed, 01/23/2013 - 19:37 | 3181106 johngaltfla
johngaltfla's picture

iF*cked

Wed, 01/23/2013 - 20:22 | 3181263 Bizaro World
Bizaro World's picture

I'm still partial to Crappl and iPhail...

BW

Wed, 01/23/2013 - 19:52 | 3181159 Silver Bug
Silver Bug's picture

This stock has been over priced for a very very long time. It has much further to go down.

 

The Collapse of America Explained in Animation.

Wed, 01/23/2013 - 22:08 | 3181530 Pareto
Pareto's picture

Never found much value in that ass clown's prognostications.

Wed, 01/23/2013 - 19:04 | 3180957 tooriskytoinvest
tooriskytoinvest's picture

TRADER ALERT: IMF Cuts Global Growth, Sees 2013 European Recession. Dollar Signals Market Topping Out. Firms Need $5 trln A Year To Meet Market Hopes. China Just Narrowly Averts Credit Bubble Pop. And Investor "Cash Allocations Fell To The Lowest Level Since February 2011

http://investmentwatchblog.com/trader-alert-imf-cuts-global-growth-sees-...

Wed, 01/23/2013 - 19:16 | 3181010 Groundhog Day
Groundhog Day's picture

With news like that the algo's will slice and dice the data to read: "IMF GlOBAL GROWTH $5 Trillion a Year" or roughly 6-8% global gdp expansion....rally the markets

Wed, 01/23/2013 - 19:16 | 3181014 walküre
walküre's picture

Firms need $5 trln a year? Well, give them $5 trln and raise them another! Give them $10 trln to get the party started!

PRINT FEST PRINT FEST PRINT FEST is coming!

Wed, 01/23/2013 - 19:20 | 3180958 TruthInSunshine
TruthInSunshine's picture

Apple iPi 3.14159s can't come soon enough for the People & iPhones of Walmart.

But seriously, they need a much thinner, more-rounded-corner iPhone and iPad mini.

Wed, 01/23/2013 - 19:05 | 3180959 Racer
Racer's picture

No doubt the PPT will come in overnight and rescue stuff

Wed, 01/23/2013 - 21:42 | 3181465 disabledvet
disabledvet's picture

The market opens at 930. AM. If you're up all night worried about your Apple position then you're playing the wrong game.

Wed, 01/23/2013 - 19:05 | 3180962 Zap Powerz
Zap Powerz's picture

Silver has been doing well lately.  Just sayin.

Wed, 01/23/2013 - 23:03 | 3181652 Swarmee
Swarmee's picture

+1 for the deadpan.

Wed, 01/23/2013 - 19:06 | 3180964 Catflappo
Catflappo's picture

Ummm,  BTFD, Fuck you Bernanke, gold bitchez?

Wed, 01/23/2013 - 19:17 | 3181018 UncleBubba
Wed, 01/23/2013 - 20:14 | 3181227 Catflappo
Catflappo's picture

Congratulations on your one and only post here at ZeroHedge!

Do you 'pop into' other websites to unload your witty link?

Wed, 01/23/2013 - 19:09 | 3180972 Zap Powerz
Zap Powerz's picture

THere is hope this fad is coming to an end.  Only to be followed by another fad.

I guess Apple isnt totally useless. It has been a good competitor for the other, better smart phone/gadget companies. By having Apple as competition, those other companies have figured out how to make better products at a cheaper price.  Products more people want than Apple.

So thanks for that Apple.

Wed, 01/23/2013 - 19:18 | 3181020 Groundhog Day
Groundhog Day's picture

or in the eyes of a good fed governor....deflation...see thier is no real inflation

Wed, 01/23/2013 - 19:09 | 3180974 Neethgie
Neethgie's picture

this is what infuriates me about analysts, the idea that something can keep growing exponentially, this was always going to happen

Wed, 01/23/2013 - 19:18 | 3181017 Al Huxley
Al Huxley's picture

Yeah, well they're just doing their job.  Analysts get paid to convince you that there's money to be made in the market, prop traders get paid by moving the price against you after you're in, brokers make money when you buy, and when you sell.  They're all essential parts of the Wall Street ecosystem that's evolved over the decades to efficiently separate the retail investor from his excess cash.

Wed, 01/23/2013 - 19:19 | 3181025 Zap Powerz
Zap Powerz's picture

Excellent.

Wed, 01/23/2013 - 19:37 | 3181109 FoeHammer
FoeHammer's picture

Great comment Al.

"A fool and his money are soon parted."

Thu, 01/24/2013 - 07:16 | 3182075 css1971
css1971's picture

Very well put.

 

And since Apple was single handedly holding up the entire USA market, it's time to dump everything.

Wed, 01/23/2013 - 19:11 | 3180975 AgAu_man
AgAu_man's picture

Newton's Law at work:  Apple rises, apple falls. 

Broker's Laws at work: People taking bets on way up and way down.  Broker makes money from both parties.  Broker parties.

Wed, 01/23/2013 - 19:12 | 3180984 dolph9
dolph9's picture

iFall

Wed, 01/23/2013 - 19:14 | 3180999 Cheshire
Cheshire's picture

Bullish!

Wed, 01/23/2013 - 19:17 | 3181015 HelluvaEngineer
HelluvaEngineer's picture

Fuck you, Ashton Kutcher!  You blew it all up, you damn dirty Ape!

Wed, 01/23/2013 - 19:18 | 3181023 Joe moneybags
Joe moneybags's picture

We have seen this movie many times before:  overnight traders, the action-junkies, panic and move the thinly traded overnight shares in bizarre, monster moves.  Rarely does the stock open at the lows (or highs) of the overnight move, and then just keep going in that direction, justifying the GTFO (on In) at any price.  None of us will be surprised if AAPL recovers at least half of its immediate loss, or that NFLX looses most of it's gain in the days ahead.

Wed, 01/23/2013 - 19:23 | 3181039 HelluvaEngineer
HelluvaEngineer's picture

I would like to subscribe to your newsletter, and order a copy of your dictionary containing "looses" as well.  

Wed, 01/23/2013 - 19:28 | 3181061 thismarketisrigged
thismarketisrigged's picture

maybe just maybe we will get a down market day tomm, or am i asking too much? maybe this can also be the start towards the bottom for the market when u see that the biggest market cap company in world misses on revenue, this during the holiday season quarter which is supposed to be its best, and i believe this is there 3rd straight miss.

Wed, 01/23/2013 - 20:23 | 3181269 ZeroAvatar
ZeroAvatar's picture

Are you KIDDING me?  14000 is in the crosshairs.......there'll be NO stopping THAT!

 

(I'm sticking to my guns: if silver spot hits $38, I'm gonna bail, and get back in later, after the market crash)

Wed, 01/23/2013 - 19:28 | 3181066 tawse57
tawse57's picture

The last I saw Apple had fallen 53 bucks in after-hours... but I only have Google finance and they stopped displaying the after-hours price now.

Anyone know what the latest Apple price is after-hours?

Wed, 01/23/2013 - 19:31 | 3181074 ejmoosa
ejmoosa's picture

At 6:30 Eastern it was 459.75

Wed, 01/23/2013 - 19:43 | 3181124 tawse57
tawse57's picture

Thanks.

Wed, 01/23/2013 - 19:43 | 3181126 SKY85hawk
SKY85hawk's picture

Try this http://www.marketwatch.com/investing/stock/AAPL

looks like $459.90

Tomorrow s/b interesting!

 

Wed, 01/23/2013 - 19:29 | 3181068 ejmoosa
ejmoosa's picture

Is this the AAPL that is single handedly supposed to have saved 4th quarter GDP from being an absolute disaster?

 

The rate of year over year profit growth is now at a job killing 6.23%.  

 

Well, there is always 2014 to look forward to.

Wed, 01/23/2013 - 19:39 | 3181114 TheBird
TheBird's picture

More significant, only 17% revenues growth Y/Y even with intro of two major upgrades (iphone, iPad) and new product, Mini. They are counting on China, but who has the dough in China to pay for their stuff? Android stuff of similar capabilities for 1/4 the price. And that is going to hit them in developed world too. How hard is it to imagine the unlocked phone price dropping 25 to 30%? Same for iPad? And thats just to stand still.

Peak Apple baby.

Wed, 01/23/2013 - 20:36 | 3181308 tawse57
tawse57's picture

Also, something that many US Apple fanboys forget - China has 2 or 3 major smartphone makers who not only make and sell phones for a price that the Chinese can afford but whose brand is actually far better known in China than Apple.

Too many Apple fanboys are Americans who have never been outside of their state let alone outside of America. It is a BIG world.

 

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