Falling Apple Stocks Cause Investors to Become Wary

Apple shares hit a critical technical level on Friday which could mean that more declines are on their way for the giant tech company’s stock.  After coming extremely close to this level that is referred to as the ‘death cross’, Apple finally gave in to continued selling pressure that pulled it into the territory of a bear market earlier in the week.  Apple was trading low in 9 of the past 11 weeks and eliminated about $150 billion in market capitalization.  Investors who believed that there was no reason not to purchase the stock are now finding any excuse to get out of it.

This downfall has been recently hitting the company which had incredibly high stocks a few months ago and was considered to be the most valuable company in the world.  The stock just recovered from a significant sell off earlier in the week by a seemingly mild change with margin requirements for holding the Apple stock.  According to analysts, investors are becoming more wary of the competitions that Apple is up against and are wondering if innovations and profits can carry the company like it has in the past.  Some believe that Apple is experiencing worries of the fiscal cliff.  In the past few weeks, investors have closed stocks that may see significant cuts in dividends due to increased tax rates that will occur if no deal is made in Washington.

Sentiment for Apple at eToro

 eTorians were hit especially hard as close to 50% were allocated to Apple.  eTorians tend to favor Apple especially ahead of Christmas and the release of the iPhone 5. Meanwhile, eToro Facebook holders, which are a distant second in top holdings with total holdings at 17%, can start smiling after a rocky ride with Facebook’s stock.  Facebook is now posting a strong 29.59% return for November, strongly outperforming the mammoth Apple which is at a startling 9% for the week. Should eTorians start diversifying out of the big Apple? To be continued…