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Where Does Apple Inc. (AAPL) Go Now?

Apple Inc. (NASDAQ:AAPL) shed 6.3% on Wednesday, but could be poised for a short-term bounce

Apr 28, 2016 at 9:48 AM
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Apple Inc. (NASDAQ:AAPL) plunged 6.3% on Wednesday, after the iPhone maker's devastating fiscal second-quarter earnings report was met with a slew of bearish brokerage notes. According to Schaeffer's Senior Quantitative Analyst Rocky White, this is the 11th time AAPL has logged a one-day drop of 6% or more going back to October 2008 -- but if past is precedent, the stock could quickly bounce back.

In fact, looking out one week past a single-session drop of 6% or more, shares of AAPL have gained, on average, 1%. This average return jumps to 3.4% going out two weeks. Over both time frames, AAPL stock has been positive 70% of the time. Today, Apple Inc. (NASDAQ:AAPL) is lower along with the broader equities market -- down 0.5% at $97.35. Per the chart below, though, this isn't that unusual.

AAPL historical returns after big losses April 28


Updated after the close:
AAPL continued its downward trend, selling off in late-session trading after activist investor Carl Icahn said he unloaded his stake. The shares of AAPL gave up 3.1% to end at $94.81, bringing their week-to-date deficit to 10.3%, and marking their longest losing streak in three years.

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