Apple Stock News: Are the Red Flags for Apple Real?

Apple Stock News

For the latest Apple Stock News. AAPL closed at $106.94 on Friday, August 26, with a fall of 0.59%, or $0.63 from Apple’s previous closing. Overall, the stock is down 1.49% or $1.57 for the past week.

Latest Updates on Apple inc:

The reasoning for the decline in AAPL shares can be explained two-fold. Whereas, Tim Cook, Apple’s CEO, has recently sold $36 million worth of shares throughout the past week. Additionally, there has been slight reinforced fears of the Apple’s ability to revamp sales for the iPhone, with the release of the iPhone 7 within weeks. Both, can be seen by investors as red flags to sell AAPL stocks, however, a more optimistic approach can explain otherwise.

Additionally, the release date for the iPhone has been confirmed for September 9, 2016.


Generally, when insiders of a firm sell their shares, this can be seen as a red flag for investors. This is due to the fact that they usually know the private dealings of the firm better than anyone in the public sphere. Therefore, if they are selling their shares, the insiders have a negative outlook of the firm. However, the recent selloff by Tim Cook was not necessarily a result of a negative outlook for Apple. Rather, the timing of the sale was predetermined under a 10b5-1plan, whereas insiders avoid ‘insider trading’, by predetermining buying/selling of shares. Even more so, this week, Tim Cook was awarded 1.26 million shares for remaining CEO for over five years, and since AAPL shares have outperformed more than two-thirds of companies in SP500 index over the past three years. He sold the $36 million, after receiving these new shares.


With regards to iPhone sales. Investors, often look percentage change in sales for a company, to see whether fundamentally the company is declining or growing. Thus, Apple’s decline quarterly sales for the iPhone, which makes up 64% of its sales, is seen by many as a red flag. However, a large part behind the loss in sales was faltering demand in China and stricter regulation in China as well. However, the iPhone is expected to revamp sales as demand is growing with consumerism in overseas, specifically in China, is growing. Additionally, as explained in our past premium article, the iPhone 7 release will actually help bolster AAPL shares.

Keep checking back for more news regarding AAPL.

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