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

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
fonzannoon's picture

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

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

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?

 

RedMeansGo's picture

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

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.

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.

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.

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.

Supernova Born's picture

Green shoots?

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

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?

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

unrulian's picture

Didn't Israel invest in Apple?

 War in 3...2....1....

Bizaro World's picture

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

BW

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.

Pareto's picture

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

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-...

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

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!

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.

Racer's picture

No doubt the PPT will come in overnight and rescue stuff

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.

Zap Powerz's picture

Silver has been doing well lately.  Just sayin.

Catflappo's picture

Ummm,  BTFD, Fuck you Bernanke, gold bitchez?

Catflappo's picture

Congratulations on your one and only post here at ZeroHedge!

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

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.

Groundhog Day's picture

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

Neethgie's picture

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

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.

FoeHammer's picture

Great comment Al.

"A fool and his money are soon parted."

css1971's picture

Very well put.

 

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

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.

HelluvaEngineer's picture

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

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.

HelluvaEngineer's picture

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

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.

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)

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?

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.

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.

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.