As the stock market continues to struggle, Apple is struggling along with the rest. As a matter of fact, today Apple’s stock is trading at its lowest point in more than 2 months. Today, we’ll talk about factors that may be causing the decline in Apple’s stock price, follow the activity we’ve seen since the drop started more than a month ago,  and discuss what we can expect over the next month.

Why Is Apple’s Stock Value Declining?

There are several theories as to why Apple’s stock is falling. Here’s what I think is affecting the bottom line…

Apple Has Lost Its Flair – In the past, one of Apple’s key marketing tactics was secrecy. Every year, the company would show off new products that no one knew anything about. Because the surprise factor was so exciting, the marketing tactic worked and Apple produced exceptional sales reports year after year. However, last year’s unveiling was a joke. The reality is that there were more leaks about Apple’s new products than leaks in hoses around the United States! Before the products were unveiled, we knew everything there was to know about the new iPhones and that a new watch was on its way. It’s also no surprise that sales just weren’t what they could have been and investors have taken note.

Apple’s Stock Buy Backs Are Scary – When there is an excess of stocks floating in the market, the general reaction is for the asset to purchase some of the stocks in limbo in an attempt to keep the stock price growing. Well, Apple has done this recently; and that’s not necessarily a bad thing. What is a bad thing is the rate at which the company has been purchasing its own equity. Because the buyback program is so hefty, investors fear that the long-term potential for growth is dwindling by the day. When the buyback program ends, share purchasers may not be able to support the company’s stock price anymore; ultimately leading to a dip in value.

Downgraded Rating – To add insult to injury, Apple’s stock was recently downgraded from “Buy” to “Neutral” by analysts at Mizuho Securities. The analysts have stated that the reasons for their downgrade include lower expectations for iPhone sales, poor expectations for iWatch sales, and downside risks associated with 2016 margins.

Starting Out On November 28th, 2014

On November 26th, 2014 Apple (AAPL) was enjoying the fruits of the bull market as the company’s stock reached its all-time high; closing the day off at $119 per share. From there, we started to see a landslide in Apple’s stock price that would continue even until today. Over the course of the next two days, the stock price would slowly fall; losing only $0.07 per share. However, the worst of the fall was soon to come.

From November 28th to December 1st Apple experienced an incredible drop in their stock price; closing the day off on December 1st at $115.07 per share and the drop would continue. As a matter of fact, the landslide would continue until December 16th, 2014, when the company’s stock price would reach $106.75 per share.

Over the next two days, it seemed as though a recovery all but inevitable. By December 18th, Apple’s stock price would climb to $112.65 per share after climbing nearly $6 per share in only two days. Over the next eight days, Apple’s stock chart would look more like a roller coaster with several peaks and valleys. However, over this period, the company’s stock price would slowly continue to climb overall. By December 26th, the company’s stock price had reached $113.99.

Unfortunately, Apple simply couldn’t keep up the uptrend following the holiday shopping season and the company’s stock started to fall yet again. By January 5th, Apple had reached a new two month low after falling to just $106.25 per share. On the 6th of January, the company would continue struggling; showing meager growth of just $0.01 per share over the course of the day.

However, On January 7th, a short-term recovery would start up once again. By the end of the day, Apple’s stock would close at $107.75; and the growth would continue. As a matter of fact, by the end of the day on January 9th, the stock had risen to $112.01 per share.

Once again, Apple was unable to keep up the momentum. By January 12th, the stock had fallen to $109.25 per share. Sadly, the stock would continue to fall. As a matter of fact, today Apple’s stock is at a new more than 2 month low; selling for just $105.99 per share.

Will Apple Recover?

Of course they will. Let’s look at the facts here. Apple is a huge, multinational technology conglomerate that’s tackled its fair share of hurdles in the past. So, the real question here isn’t “Will Apple recover…” it’s more like “When will Apple recover?” All the signs point to a rough short term. Over the course of the next few weeks to a month, we can expect Apple’s stock price to continue on a rocky road with an overall downward trend. However, we can’t discount the power Apple has to bounce back. It’s only a matter of time before we start seeing more growth!