Five Down-Days Doesn't Make a Bad Apple

NEW YORK ( TheStreet) -- Apple ( AAPL) stock has gone down for five straight days and so the media, with its usual search for certainty in an uncertain world, offered up reasons.

Investor's Business Daily offered one reason, showcased in its headline: "Apple Stock Tumbles For Fifth Straight Day As iPad Mini Rumors Resurface In China." That was the only reason IBD mentioned.

Barron's said nothing about a mini iPad, noting only that an influential analyst said that Apple might miss their Mac estimates in the second quarter.

In an article called, "Apple shares fall 4%; losing streak hits five days," Marketwatch, for its part, proffered no reasons for the decline.

Bloomberg went a totally different route. Their headline brought to the fore an altogether new cause: "Apple Falls for Fifth Day on Concern of Carrier Subsidy Cut." In the body of the article, though, Bloomberg also mentioned the analyst's second quarter Mac-estimate cut, as well as concerns over sustainability over iPad sales. They then touched upon a most basic factor, one that few -- if any -- other media outlets deigned to mention: Apple's stock is up by nearly 50 percent this year. Uh, think a slight giveback is part of the natural course of things? Certainly.

Anyone who purports to know precisely why Apple is down over the course of a few day's time is either fooling you or delusional. But here's what you know: the Johnny-one-notes in the media are wrong. Apple is probably coming off for a grab bag of reasons, chief among them the mere fact that it has gone up almost without interruption this year. At some point, it's going to have a few bad days.
At the time of publication, Fuchs had no positions in any of the stocks mentioned in this column.

Marek Fuchs was a stockbroker for Shearson Lehman Brothers and a money manager before becoming a journalist who wrote The New York Times' "County Lines" column for six years. He also did back-up beat coverage of The New York Knicks for the paper's Sports section for two seasons and covered other professional and collegiate sports. He has contributed frequently to many of the Times' other sections, including National, Metro, Escapes, Style, Real Estate, Arts & Leisure, Travel, Money & Business, Circuits and the Op-Ed Page.

For his "Business Press Maven" column on how business and finance are covered by the media, Fuchs was named best business journalist critic in the nation by the Talking Biz website at The University of North Carolina School of Journalism and Mass Communication. Fuchs is a frequent speaker on the business media, in venues ranging from National Public Radio to the annual conference of the Society of American Business Editors and Writers.

Fuchs appreciates your feedback; click here to send him an email.

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