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Good News Apple Bulls: Today's $60 Billion Market Cap Loss Is Not The Biggest One Day Drop In History

Tyler Durden's picture




 

Apple lost a remarkable $59.63bn in market cap today sending even the most ardent of bullish sell-side analysts scrambling for cover. However, there is a silver-lining, this is not (as many expected) the greatest market cap loss ever in history in one day for any company - it is in fact 3rd!! The holder of the Number 1 and Number 2 spot is none other than AAPL's awful analog - Microsoft (which is itself having a tough night). MSFT lost an enormous $77.18bn on 04/03/2000 and then 3 weeks later followed it up with another epic $61.81bn drop on 04/24/2000. As AAPL drops perilously close to losing the top spot of global market caps to XOM, we note that even that prestigious name had a 'moment' when it lost $52.5bn in a single-day on 10/15/2008. So, good news all around then.

Will Apple ever see those loft heights again?

 

Exxon Mobil is still struggling to regain the levels it was trading at before the big loss...

 

Microsoft never regained the levels it was trading at before these epic losses...

 

It was a mere 5 months ago (3 weeks before the top) that we warned of AAPL's human-nature-based exuberance and its similarities to MSFT... the MSFT to AAPL analog continues to play out... more of a drop to come, a bounce then the real plunge to $300?

 

Charts: Bloomberg

 

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Thu, 01/24/2013 - 21:19 | 3184359 Smegley Wanxalot
Smegley Wanxalot's picture

Please tell me the worst is yet to come for crAAPL.

I wanna see the iNazis goosestep into oblivion

Thu, 01/24/2013 - 21:27 | 3184396 DeadFred
DeadFred's picture

It's always good to have goals. Better luck next time

Thu, 01/24/2013 - 21:31 | 3184402 YBNguy
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JPMorgan's Dimon says: you don’t need to know how banking works, it’s like an airliner engine, too complex to explain, just shut up and pay us!

Video 

Thu, 01/24/2013 - 21:33 | 3184408 Harlequin001
Harlequin001's picture

Bullish.

and airliner engines are actually fairly straight forward...

Fri, 01/25/2013 - 00:12 | 3184806 old naughty
old naughty's picture

Price you pay for being on top.

Fri, 01/25/2013 - 07:25 | 3185111 GetZeeGold
GetZeeGold's picture

 

 

Price you pay for being in the bubble.

Fri, 01/25/2013 - 08:32 | 3185168 TrumpXVI
TrumpXVI's picture

I just bought a Sandisc Clip Mp3 player instead of an iPod w/all of the restrictive Apple proprietary baggage.  Companies like Samsung (Galaxy) and Sandisc are eating the Apple down to the core with better products.  But be careful what you wish for Apple haters.  There seems to be a relationship between the sell off in Apple and the sell off in gold.  The Hedgies prolly need to cover losses in the one area with cash raising in the other.

Fri, 01/25/2013 - 00:48 | 3184880 King_Julian
King_Julian's picture

Suck, squeeze, bang, blow!

Fri, 01/25/2013 - 01:00 | 3184889 derek_vineyard
derek_vineyard's picture

aapl is a proxy for the entire market (per zero hedge)..... spx down 200 pts today????

Thu, 01/24/2013 - 21:37 | 3184412 Supernova Born
Supernova Born's picture

That Jaime Dimon airline engine analogy was the most epically retarded analogy I've heard in my lifetime.

Thu, 01/24/2013 - 22:29 | 3184570 Harlequin001
Harlequin001's picture

He thinks because he doesn't understand it no one does.

Typical arsehole really...

Fri, 01/25/2013 - 00:14 | 3184807 Gidas19
Gidas19's picture

ZH, I would love to see hotel AAPL-fornia hedge fund holdings again after this Corzined day...

http://www.zerohedge.com/news/2012-11-19/september-30-hedge-fund-hotel-a...

Fri, 01/25/2013 - 00:26 | 3184838 clara-to-market
clara-to-market's picture

Apple is on the verge of shitting the bed.

I'm a Samsung guy.

The Galaxy rocks.

Fuck Apple.

And fuck Santa.

http://angrysinner.blogspot.kr/2013/01/yesterday-dragon-lady-made-egg-rolls.html

Thu, 01/24/2013 - 21:20 | 3184367 Son of Loki
Son of Loki's picture

Can someone explain to me how Al Gore knew to exercise his options and sell out last week for a massive profit right prior to this plunge?

Thu, 01/24/2013 - 21:23 | 3184377 Smegley Wanxalot
Smegley Wanxalot's picture

No worries. 

The SEC will be right on that like flies on obama.

Thu, 01/24/2013 - 21:29 | 3184399 The Monkey
The Monkey's picture

Anything and everything goes under the current state department and SEC. Collusion is obvious. Watch the tape and follow the money trail.

Thu, 01/24/2013 - 21:32 | 3184405 francis_sawyer
francis_sawyer's picture

Must have been his "channelingstocks.com" subscription, or his "pattern recognition" software from TD Ameritrade...

Thu, 01/24/2013 - 21:44 | 3184430 Supernova Born
Supernova Born's picture

No one would get on an airliner if the FAA was as inept/corrupt as the SEC.

Thu, 01/24/2013 - 21:50 | 3184462 withere
withere's picture

I hold Gore with as much disdain as any loyal zh reader should but in this case Gore appeared to be exercising options, not selling the shares. If they were non qualified options, there would have been tax due on the spread on the date he exercised. Long way of saying, he lost money by incurring a tax bill on a higher valuation than if he had waited until today to exercise.

Thu, 01/24/2013 - 21:56 | 3184483 BlueStreet
BlueStreet's picture

Compared to inventing the internet that was easy.  

Thu, 01/24/2013 - 23:08 | 3184680 SAT 800
SAT 800's picture

Any good chart reader, professional trader, would have sold out before this; like me for instance. Whether it was two months before or a week before iis meaningless. Overblown is overblown, and good traders makes their money by buying cheap; you always want to sell out "too soon"; and laugh all the way to the bank.

Thu, 01/24/2013 - 21:22 | 3184376 Theos
Theos's picture

maybe a company that makes gadgets should not be worth more than the largest energy company on our hopelessly energy dependent planet.

Thu, 01/24/2013 - 21:31 | 3184407 NoDebt
NoDebt's picture

Yep.  That.

Second time requesting of the Tylers: start overlaying AAPL 's share price against MS but synchronize it peak-to-peak (rougly a 12 year time offset between their respective share price peaks).  And post it up every few months.  I bet will make an interesting graph. 

Thu, 01/24/2013 - 21:23 | 3184378 Son of Loki
Son of Loki's picture

I wont hold my breath.

Thu, 01/24/2013 - 21:23 | 3184380 The Shootist
The Shootist's picture

nasdApple. iEconomy. Ponzi.

Thu, 01/24/2013 - 22:06 | 3184513 CompassionateFascist
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Really. Limbaugh, an "unpaid" shill for Apple, was desperately pumping the stock on his show today. 

Thu, 01/24/2013 - 22:42 | 3184609 The Shootist
The Shootist's picture

He's always giving away free Apple products. At least Ive never heard him pump the stock when I occasionally have the dial tuned.

Thu, 01/24/2013 - 21:23 | 3184389 NoDebt
NoDebt's picture

Oh, I remember those days.  Good times.  Goooood times.

 

Thu, 01/24/2013 - 21:27 | 3184395 bigkahuna
bigkahuna's picture

Why did the fed money stop going into Apple? Who's wheaties did Apple piss in?

Fri, 01/25/2013 - 00:58 | 3184888 King_Julian
King_Julian's picture

This puts the nail in Kalifornya's coffin. Fed rescue to come; That train's nevah late...Or maybe it pulls forward more revenue from those who bail now?

Thu, 01/24/2013 - 21:31 | 3184406 Buck Johnson
Buck Johnson's picture

This market is getting ready to deflate big time.

Thu, 01/24/2013 - 21:40 | 3184428 Tsar Pointless
Tsar Pointless's picture

Hmm. 2000.

2000.

Why is that year so familiar to me, vis-a-vis the stock market?

Hmm. Hmmmmmm....

Thu, 01/24/2013 - 21:43 | 3184437 Silver Garbage Man
Silver Garbage Man's picture

My shiny stuff is still shiny. This is very satisfying.

Thu, 01/24/2013 - 21:46 | 3184446 Silver Garbage Man
Silver Garbage Man's picture

Think about this......enough paper "wealth" evaporated today to easily buy every ounce of silver out there. That should scare people.

Thu, 01/24/2013 - 22:15 | 3184530 espirit
espirit's picture

I've heard the iChink Apple products not sold under licence are really that much better.

Thu, 01/24/2013 - 22:24 | 3184551 billsykes
billsykes's picture

Bet Cook is going to go retro and bring back the ipod, after all why not recycle technology. This guy is about the worst person for the role- it would be better to take a huge risk on a new isomething or even update their OS, then to get left behind. 

Crapple's day in the sun has passed. Chinese phones are kicking the shit out of apple, screen, memory, processor, price, OS, give android 5yrs.  

margin, margin, margin. http://www.youtube.com/watch?v=-yZHveWFvqM 

Thu, 01/24/2013 - 22:27 | 3184559 bobert
bobert's picture

The I Phone, AAPL tablets etc. are the favorite of the talking heads on CNBC & Bloomberg. ,

What do we make of that?

Thu, 01/24/2013 - 22:35 | 3184592 Tombstone
Tombstone's picture

NFLX, AMZN, LNKD, and several others all have PE's above 250 and basically have skimpy earnings.  AAPL will likely earn about $50/share this year and with a PE of 250....hey that's a stock price of $12,500.  So don't scrap SCRAPPLE.  All you need is some good ole CNBC pumpnology and some Krammerization and soon we will see AAPL with a $5 trillion market cap.  That will make Benny's balance sheet look like table scraps.  A word to those would-be market super star traders and investors: Always have an exit price to protect gains or minimize losses, even if you are planning on holding into the next life.  If you own just 100 shares of AAPL, you lost over $6,000 today.  That buys a lot of gizmos and gadgets.

Thu, 01/24/2013 - 22:54 | 3184650 bobert
bobert's picture

Yeah they are long AAPL and talking their book I guess. It's really obvious. Only negative things to say lately about other manufacturers.

Fri, 01/25/2013 - 00:13 | 3184803 tip e. canoe
tip e. canoe's picture

canary in the orchard

Fri, 01/25/2013 - 00:41 | 3184868 Charles Wilson
Charles Wilson's picture

How did Linux do today?

 

CW

Fri, 01/25/2013 - 03:37 | 3185027 flyingcaveman
flyingcaveman's picture

still free

Fri, 01/25/2013 - 00:47 | 3184879 ebworthen
ebworthen's picture

Hell, $60 billion is less than one month of Ben "Jizz-Master" Bernanke's MBS purchases.

Fri, 01/25/2013 - 02:38 | 3184986 ItsDanger
ItsDanger's picture

Good call for Reggie.  Where are all those posters badmouthing that short trade?

Fri, 01/25/2013 - 05:28 | 3185062 mogga71
mogga71's picture

I am sorry chaps but all I see here is one hell of a buying opportunity.  If people stand back and look at those results and then compare it to the ridiculous 12% share price drop ..... then its got to be one of the best buying opportunities ever.  The shares will be back at $500 next week.

Yes Apple was overpriced ...... but they are way undervalued now. Thats got to be the most absurd share price drop in years.

I will sell some gold, buy Apple, sell in 2 weeks and buy even more gold.

 

 

Fri, 01/25/2013 - 05:47 | 3185073 falak pema
falak pema's picture

thank you ZH for reminding the world the WS ponzi began back in 2000 with the Dot.com bubble...we have such short memories here when we are hooked to daily rises and falls of the S&P. 

Fri, 01/25/2013 - 07:04 | 3185105 100pcDredge
100pcDredge's picture

Ah - Phew. Jolly Roger!

Fri, 01/25/2013 - 09:29 | 3185231 NotAMathWhiz
NotAMathWhiz's picture

I think AAPL's problems can be summed up in the following real-life example:

We bought my wife an iPhone 5 after she dropped her Android phone in a bucket of water, and it cost us a stupid amount of money.  She's my wife, she works, and I love her, so I won't offer any other excuses.  The phone is OK, but really nothing special.

Two weeks later I wrecked my work Android phone, and it was replaced with an iPhone 4 for $0 (I had no say in the choice).  The phones are functionally nearly identical.  Slightly different form factor, and features on the 5 that aren't used or needed.

If my work phone had died 2 weeks before my wife's phone had gone for a swim we would have never gone Apple, and would have stayed with Android, probably Samsung.  People that are smarter than we are (includes almost everyone) know this instinctively.  In our defense, this was our first Apple purchase on anything, and we thought we would give it a shot to see what all the noise was about.  All hype, no real substance.  We'll never purchase an Apple product again.

We also have two Asus Nexus 7 tablets in our house, and they're awesome.  We know plenty of people with the iPad's and have used and seen them in action, and the Nexus tablets are head and shoulders better products at a fraction of the cost.

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