Earlier this week, I published an article on Anyoption.com’s blog about Apple’s stock price dipping to a 2 month low, and why we’re seeing the change.  I thought the best way to debut here at TalkMarkets under my own name would be to go into more detail about the three things that Apple (AAPL) doesn’t want its investors paying attention to -- although Apple’s stock chart shows that investors are indeed taking note.

 #1: Apple’s Unveilings Are Getting Worse

I’ve been a techie all my life. As a matter of fact, I remember adding the Sega Dreamcast to my video game collection when the video games only came in foreign languages. So naturally, year after year, I would patiently wait for Apple to unveil the new (and most likely mindblowing) technology it had come up with that would be available soon. I have to say the mystery was the most exciting part of the entire ordeal. Unfortunately, Apple has lost its touch. Last year’s unveiling was incredibly weak. As a matter of fact, I remember publishing a post about the Apple watch months before anyone was supposed to know anything about it. By the time the unveiling actually came, we knew what was coming and the excitement seemed to be … well… gone.

#2: Apple Is Purchasing Its Own Equity

When a publicly traded company has too many shares in limbo, it’s not uncommon for them to start purchasing those shares in an attempt to keep the stock price growing. The concept is relatively simple. When there is a large supply of shares and not enough demand for too long, the price per share drops. So, to stop the share price from dropping, the asset purchases its own shares; reducing the supply of the company’s stock. However, Apple seems to have gone overboard with the buyback concept. In Q4, they announced a $17 billion dollar buyback plan, resulting in more than $45 billion worth of shares that Apple has bought back since the beginning of  fiscal 2014. So, what’s the problem?

Well, buying back shares isn’t uncommon, but massive buybacks can be a big issue. The reason this is a big issue is because at some point, Apple will not be able to continue hemorrhaging money into buying back stocks. When Apple stops reducing the supply, if demand stays at current levels, Apple’s stock price has nowhere to go but down.

#3: Apple’s Stock Has Been Downgraded

The botched unveiling that Apple did last year led the way for a downgrade. Pacific Crest Securities and others have downgraded Apple’s stock from a “buy” rating to a “neutral” rating. “Why,” you ask? Because following last year’s debacle of an unveiling, the company’s sales were very low, building upon concerns that Apple will not be able to keep up the growth momentum they’ve shown over the years. Pacific Crest Security cited poor expectations for iPhone and iWatch sales as reasons for their downgrading.

Final Thoughts

While I have a ton of faith in Apple’s ability to recover from a hit, I have to side with Pacific Crest Securities. The bottom line is that we’re talking about a massive company with a few massive issues. There’s no telling how long it will take for the company to start moving in the right direction again. Therefore, if you don’t already own the stock, I wouldn’t necessarily jump at the chance to buy it right now.