Why Apple's Stock Is Dropping | Daily Ticker - Yahoo! Finance

The good news for Apple investors is that the stock still isn't expensive ? and never has been, despite the company's spectacular growth.

At $625, Apple is trading at 15X trailing earnings per share. That's about in line with the market's long-term average, and Apple is expected to grow much more quickly than the average company over the next few years.

Apple's stock, therefore, seems to be assuming that there will be some mixed news on the horizon. Not terrible news ? if Apple hits real trouble, the stock could tank from here ? but mixed news.

Also, if Apple makes bullish remarks about current iPhone sales when it reports its September quarter in a couple of weeks, investors could get jazzed again. Then the chatter will once again turn to how many iPhones Apple might sell in the December quarter, and the market could get all hot and bothered speculating about that.

For those who are worried about Apple's stock, a look at the stock's longer term performance certainly puts the recent decline in context.

The stock has more than doubled in the past year.

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Source: http://finance.yahoo.com/blogs/daily-ticker/why-apple-stock-dropping-122259431.html

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