Shares of Apple Wednesday fell $4.36, or 4.2%, to $98.94. That's the biggest dollar decline by Apple since it lost $6.19, or 8%, to $71.17 on a split-adjusted basis on Jan. 28, 2014, according to data from Yahoo Finance. Since Apple is the most valuable U.S. company, with a market value of more than $618 billion, Wednesday's decline cost investors $26.1 billion. Apple is set to unveil a series of new products which include the new iphone 6 and the new iwatch. Many investors on the street believe that apples current valuation prices in the new phone cycle but what many do not account for is the impact of the iwatch. Apple is also set to announce new products. Wired reports that the phones will have a payments platform a feature that had been the center of speculations for several years and could build on Apple's ibeacon technology. The new iwatch is also likely to have a wearable extension device that will use HealthKit Software and will aid in monitoring heart rate and other fitness tracking features. The new products that are potentially coming are not priced in to the stock at is high of over $103 and certainly now Apple looks like a solid buy if you are bullish. Apple is going straight to $110 dollars and it is obvious that this event is about the new products which are likely to come. Shorts might be in a lot of pain very shortly.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.