AAPL stock down, Jobs’s health problem? Just a bug

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Jun 13 2008
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After Google offer the oxygen tank to Yahoo Inc. in order to cut off Microsoft from acquiring the latter, Yahoo is like a drug addict who has nowhere else to go but back to Google for the fix. Now that Microsoft is off from the deal, Yahoo is firefighting at its own backyard – rebellion among its own shareholders. The last effort to beg Microsoft to return to negotiation table hoping to get back the $33 a share offer failed. Yahoo thus has no other choice but to let Google handle some of its advertising sales announced Thursday.

However the extra $800 million annual revenue from Yahoo-Google partnership was not enough to pacify shareholders. The antitrust concerns might prevent such partnership so Yahoo is really in the limbo. Without doubt the person whom many shareholders are pointing their fingers at now is Jerry Yang who was accused for letting his emotional attachment blur his judgment during the Microsoft negotiations (Jerry Yang demanded $37 that forced Ballmer to back-off completely).

AAPL stock after hourIt’s almost no-brainer that given the option, it’s obvious the choice is on Google’s stock instead of Yahoo – the shares plunged $2.63, or 10.1 percent, to finish Thursday at $23.52. While it was a bullish day for Dow Jones, it was a gloomy day for Apple Inc. I bet you were scratching your head why the stock plunged for no apparent reason. It couldn’t be due to the announcement by Steve Jobs that there won’t be any new model for iPhone. The stock did drop but rebounced thereafter since investors found consolation that the price-slash would make up for the volume.

Steve Jobs health problemThe culprit was the rumors that Apple’s ultimate captain Steve Jobs is having health problem although his past (four years ago) pancreatic cancer had been treated. Steve is largely viewed as irreplaceable at Apple and a slight rumor could spell doom to the stock. During Monday’s WWDC keynote presentation, Jobs was spotted looking rather thin thus ignited the rumors. The Wall Street Journal picked the story up and things snowballed thereafter. An Apple spokeswoman was quick to clarify that Jobs was hit with a “common bug” in recent weeks and is taking antibiotics but he still felt it was important to participate in the Apple conference.

That’s the problem with a company dependent solely on a single key individual. So it was natural for the stock to be punished and shed some 4 percent from its previous close. The stock should be able to climb back in no time – that’s if majority choose to think it was not such a big hoo-haa after all.

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