Steve Jobs premium?
So, this is at this point old news: SJ is out for at least 6 months, Tim Cook (COO) is in charge in the interim….awesome. My question is about why Apple’s stock price has dropped so precipitously?
Stay with me on this one. As I understand it, stock valuations are meant to be forward-looking. That is, analysts take into account everything they can in the future of the company/industry and calculate the overall current valuation of the company based on how much money the company will make over its lifetime. If that is the case, shouldn’t analysts already know that Steve Jobs will inevitably be stepping down, and probably sooner rather than later? I mean, I would expect a small drop because Jobs is stepping down sooner than expected, but a huge drop? That doesn’t seem quite as well reasoned to me.
Anyway, I’m not really confused that the AAPL price is dropping like it is, just expressing my disappointment that the market is so emotionally driven.