The stocks opened today about 5% down from Friday – valuing at a loss of US$15 billion dollars in the company’s market value. Have no fear – while billions of dollars seems mind blowing for us – it’s really just pennies for Apple.
The drop isn’t shocking – Yesterday Steve Jobs announced that he will be out on a temporary medical leave and COO Tom Cook will be taking over the day to day operations in his absence. Pretty sneaky move since it was Martin Luther King Day – a day when U.S. stock markets are closed – giving investors a day to process the announcement before making any sudden movements.
Analysts surprisingly remain calm – They believe Apple’s future is bright and this announcement isn’t as doom and gloom as one would think. Today Apple is scheduled to announce their quarterly revenue and some analysts believe that they will announce a 50% increase in revenue. This is just one week after their Verizon iPhone announcement.
Since the market opened the stock has already rebounded a few percent – so things are looking good for now. The last time Steve Jobs announced a temporary medical leave – stocks dropped 8%. It’s hard to tell what will happen but as long as Jobs says he’s coming back, investors will likely hold onto their shares.
If Jobs doesn’t come back, Apple can expect trouble. With such a charismatic leader so closely tied to Apple’s massive fortune, it’s hard to say where the future would be without him.
Do you think that Apple can survive without Steve Jobs?