Unless you’ve been living in a cave somewhere in the Himalayas, you’ve likely heard that Apple’s (AAPL) stock has struggled lately.  But even if you follow Apple closely, you may not realize that it’s currently experiencing its longest correction of the post-iPod era.  A “correction” is known to be a decline of at least 10% that was preceded by a rally of at least 10%.  Since Apple’s last all-time high of $133 was made on February 23rd, 2015, the stock has fallen 13.89% over the last 164 calendar days, and the stock hasn’t experienced a rally of more than 10% during this time period.  This 164-day “correction” is longer than any other one the stock has experienced since Steve Jobs introduced the iPod in October 2001.

Why did we pick the introduction of the iPod as our starting point?  Because Apple’s history as a public company is typically viewed in “B.i.” and “A.i.” terms.

Before the iPod, Apple was certainly an innovative company in its space, but it had its ups and downs.  From its IPO price of 39 cents (split adjusted) in December 1980 through October 2001, the stock gained 172%.  Since the introduction of the iPod in October 2001, the stock has rallied roughly 10,000% from the low-$1s up to its current price of $114.45.

Below is a chart showing the length, in calendar days, of AAPL “rallies” and “corrections” during the post-iPod era.  Prior to the current 164-day “correction”, the longest one the stock had experienced was 124 days from February 2011 through June 2011.  No other AAPL corrections have lasted longer than 100 days since October 2001.

investingwithbespoke

Print Friendly, PDF & Email