Apple shares drop after Jobs resignation
Trading suspended before reveal
Apple's share price has dropped over 5 per cent in after hours trading, following the news that Steve Jobs has resigned as CEO.
The company released a statement announcing Jobs's resignation at about 3:30pm Pacific, after the markets had closed in New York, and as of 5pm Pacific, Apple's share price had fallen from 376.18 to 356.61, a drop of 5.20 per cent.
Prior to the announcement, Apple's stock was suspended from trading.
Apple is the world's second most valuable company, after Exxon, and the world's most valuable technology company. But its fortunes have been closely tied to Jobs, who founded Apple and – after a spell outside the company in the late 80s and early 90s – guided the company to heights few thought were possible.
In 2008, Apple shares fell as much as 5.4 per cent after an online rumor said Jobs had suffered a major heart attack. The rumor was not true, but prior to Apple denying the report, the company's share price hit a 17 month low.
Over the previous year, the company's stock price had already dropped 49 per cent, due – at least in part – to questions over the health of Apple's leader. In 2004, Jobs had surgery to treat a rare form of pancreatic cancer, and when he appeared in public in July of 2008, he was significantly thinner than before.
In January 2009, Jobs took a leave of absence from the company, saying he was suffering from a "hormone imbalance". He returned to the job six months later, but then in January of this year, he announced another medical leave.
Despite Jobs's continued health problems over the past three years, Apple's share price has more than tripled. Former Apple COO Tim Cook has taken over the CEO post. He also served as acting CEO while Jobs was on medical leave. ®
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So now who is going to convince people that their overpriced, under-featured devices are worth it? Who is going to explain away missing features as unnecessary only to tout them as the greatest thing since sliced bread when they finally make it into the product years later.
Gamblers act stupid... news?
Stock traders are gamblers. With the exception of when a single individual or group attempts to purchase enough of a share of a company to take control of it, a stock has no value other than the perceived value. The activity of the company which issued the shared is sometimes used as the premise for setting prices at which a person is willing to sell a share or alternatively another person would consider buying the share, but the activities of the company itself have no direct effect on the share itself. It's like how placing a bet on a horse on a track will not impact how the horse runs.
The value of the share itself also has absolutely no impact directly on the company. Meaning that if tomorrow the Apple share were worth $0 and all the idiot gamblers.. I mean investors would go bankrupt, but Apple would continue business as usual... probably making more money than ever before.... except many of the people who went bankrupt can't afford iPhone 5 anymore.
We really need to stop supporting, publicizing and/or glorifying the activities of these professional gamblers who have little credentials other than the more successful ones have managed to win more money gambling other peoples live savings than they have lost so far. They don't understand much of anything and have limited mental capacity and still, we keep valuing companies based on their misconceptions of their value. I'm all for a free market and such... but we place too much importance on these gambling idiots.
This right here,
"But its fortunes have been closely tied to Jobs, who founded Apple.."
He COfounded Apple. He let Woz do all the work while he went around selling it and supplying potential buyers with all sorts of illicit narcotics.