Apple shares closed on Wednesday at their lowest point since 8 February 2012 after a year in which the stock reach the heights of US$705 (on 21 September). The stock closed at US$485.92 after hitting a low of US$483.38 during the day.
However AAPL shares are back above US$500 after rising 4.15 percent last night to US$506.09.
The Apple share price plummet followed a Wall Street Journal report on Sunday evening in the US that claimed the company had halved its component orders for the iPhone 5. It has since emerged that the report included inaccuracies which were later removed; was an old story that broke last December; and that call options written this winter are due to expire on 19 January – suggesting stock manipulation may be taking place.
In reaction to the share price slide, founder of DoubleLine Capital Jeff Gundlack predicted that the stock would fall further. Speaking on CNBC’s ‘Squawk on the Street’ Gundlack said: “Not because I’m a bond guy or stock guy, but because I’m a market guy. I’ve been around for a long time and I know that when something goes vertical like Apple did from $425 once the bubble pops it goes back down to the point at which it lifted off,” reports International Business Times.
Gundlach described the stock as being in a “consolidation period”, he thinks that it will continue to hover around this level while “the stock market stays locally reasonably strong,” suggesting that any economic problems in the US may impact the Apple stock.