Apple's Stock Has Gone Nowhere Lately so Should You Be Worried?

 

NEW YORK (Real Money) -- Anong the most common questions I get asked every time I meet someone who has a bit of skin in the stock market are: What is wrong with Apple  (AAPL)?" Why does all it do is go down? Why is it stuck in the mud for so long?

There is nothing wrong with Apple.

In fact, in the last 52 weeks it is actually up more than 45% compared with less than 10% for the S&P 500. Year to date, AAPL is up 18% against. the S&P 500 which is up less than 2.5%. Admittedly, since Feb. 23, the stock has been essentially flat and investors can get the impression that the stock has done nothing for a long time.

In reality, the stock has been in a trading range since that day and has not been able to move out of that range for many reasons and what many investors perceive as triggers. So, let's attempt to reason out what exactly is going on with AAPL the last several months.

The first thing that should jump out to even a passive investor in Apple is the barrage of negativity that the company seems to generate almost on a daily basis. Think antenna-gate, bend-gate, so-called problems with iOS almost daily, bugs that crash the iPhone, iPad and/or every other Apple product, conjecture that Jonathan Ive's promotion was actually a demotion or a prelude to Jonny's exit from the company and all other sorts of nonsensical articles, messages, tweets and other social media.

This is mainly due to the fact that Apple is the king of the hill at present and everyone wants their 15 minutes of fame by trying and knock the company off its pedestal, be it through made-up chatter or through wild, harebrained theories and total innuendo backed by almost no facts.

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