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Is the Facebook IPO hurting Apple (AAPL -1.8%)? As shares fall further below the levels they...

Is the Facebook IPO hurting Apple (AAPL -1.8%)? As shares fall further below the levels they traded at prior to Apple's strong FQ2 report, one theory making the rounds is that NASDAQ index funds are selling to make room for Facebook and its likely $100B+ market cap. In addition, Bloomberg reports a number of major hedge funds, including SAC Capital and Viking Global, took profits on Apple in Q1, though they collectively still held 37.8M shares at quarter's end.
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Comments (18)
  • muoio
    , contributor
    Comments (2957) | Send Message
    If this is true the hedgies will burn most 2 times....on the way out of AAPL and 2 -3 days after Face opens.


    Kind of scary....


    Good trading..
    17 May 2012, 01:31 PM Reply Like
  • pat50
    , contributor
    Comments (44) | Send Message
    I wanted to buy AAPL today (wow 532! aapl may be better buy than FB ipo)--but money tied up hoping to get FB ipo--will buy some friday either from sale of FB or from money not used to get ipo--no way I want to keep FB! But FB at least kept me out of this market. Wonder what friday will bring
    17 May 2012, 01:49 PM Reply Like
  • muoio
    , contributor
    Comments (2957) | Send Message
    If you think or thunk FB is a buy.....well...


    Good trading.
    18 May 2012, 04:06 PM Reply Like
  • highrisker11
    , contributor
    Comments (15) | Send Message
    Your such a persistent Apple Bear Munoio, posting all over with your neg's on Apple, you must be short..... good luck with that....
    17 May 2012, 01:50 PM Reply Like
  • Stoploss
    , contributor
    Comments (1727) | Send Message
    Just think how much tangible liquidity faceplant would have if they had charged a 10$ lifetime user fee since their inception..900 million users? Could have been the largest privately held company on the planet, right now, with no physical product, or need for ad revs. Hmmm.I am certain if people can come up with the cash for an iphone or ipad, they would still be able to come up with ten bucks to be a facebook lifer, even in this environment.
    17 May 2012, 02:05 PM Reply Like
  • livshk
    , contributor
    Comments (31) | Send Message

    17 May 2012, 02:30 PM Reply Like
  • what do I know
    , contributor
    Comments (1049) | Send Message
    I would like to venture that a major part of the crowd that turns on the computer ( may be 50%) sees their computer going off due to black out 4 times a day and the use is limited to Saturday/Sunday as they have to go to school/college and maintain grade point. One more thing, half of the world population don't have 3 meals a day and is not comparable to the use of iphone or ipad as we are talking about different population. Remember Chat Room and what was its impact on teenagers?
    17 May 2012, 03:33 PM Reply Like
  • bobbobwhite
    , contributor
    Comments (2055) | Send Message
    This article falls into the sorry category of, "come up with something people might read, OK, as our sponsors are desperate and want more soap sold or at least get a few hits on the site".


    Or, "Lets see, how about a story on Tat Men and Women on Wall Street? That should get some hits."
    17 May 2012, 02:18 PM Reply Like
  • milesmolyneux
    , contributor
    Comments (4) | Send Message
    Having taken a hit shorting Apple a month or so ago, there does appear to be a big sell off. What else is happening soon?... Facebook.
    I think your editorial could well be right. With banks tanking all over because of Greece/Spain I would have thought the nasdaq wouldn't have been hit so hard recently.
    As for Apple vs Facebook, I know which I use the most and which is the most useful to my business... and it ain't FB!!!
    17 May 2012, 03:25 PM Reply Like
  • what do I know
    , contributor
    Comments (1049) | Send Message
    I am a little surprised that hedge funds together hold about 38 m this is a pittance 38/950 or about 4% holding. I thought that when AAPL announced dividend the participation by hedge funds increased! Also, Apple has a buy back program and is Apple using this opportunity to stabilize the price? It does not look that Apple is buying back any shares!
    17 May 2012, 03:26 PM Reply Like
  • irvory and snow
    , contributor
    Comment (1) | Send Message
    I'm part of the investor's group but this is my first seekingapha account. I'm a rooky research investor who does not give into analysis's opinion if it's different from my own. I have not engaged in stocks trading enought to lost to any analysis's opinion. I can make precise estimates for all my porfolio stocks and new ipo stocks. I look forward to being part of seekingapha... let the games begin.
    17 May 2012, 03:27 PM Reply Like
  • todd.kaime
    , contributor
    Comments (95) | Send Message
    But Facebook is only expected to raise $18.4 billion in their IPO. That's a lot less than AAPL's decline. I guess if the hedgefunds are not initial participants in the IPO then they're expecting to have to buy in at a premium.
    17 May 2012, 07:37 PM Reply Like
  • what do I know
    , contributor
    Comments (1049) | Send Message
    You know I agree with you and I am confused like you about the drop in AAPL vs. money raised by FB from this IPO. But, even yesterday, May 17, 2012 in the Fast Money somebody mentioned that manager are unloading AAPL to make room for FB! And another fellow retorted that if that is the case then yesterday was the last day for AAPL's slide. Nobody challenged that point of $16 b vs 100 b difference.
    18 May 2012, 09:22 AM Reply Like
  • M.I.Missingsomething
    , contributor
    Comments (13) | Send Message
    I don't expect a bump in the stock price from the Company's stated Share Repurchase Program (SRP). In the conference call of March 19th, Tim Cook clearly stated the purpose of the $10B 3 year SRP: "with the primary objective of neutralizing dilution of future grants through Apples employee equity program". I heard this as a way to transfer 10B over the next three years to their (Sr.?) employees without it diluting the existing shareholders.
    This will not help the current share price but will keep Apple's employees focused on business success without hurting existing shareholders.
    The SRP doesn't start until the December quarter.
    If you are interested in the audio of the conference call it is at:
    FD = Long Apple
    17 May 2012, 08:08 PM Reply Like
  • what do I know
    , contributor
    Comments (1049) | Send Message
    I know what you are saying here is 100% correct but if I had anything to do with maximizing AAPL share holders' wealth I'd call for a special meeting with the proposal to buy back AAPL share available at this distressed price.
    18 May 2012, 04:39 PM Reply Like
  • bailinnumberguy
    , contributor
    Comments (1165) | Send Message
    The institutions first in on the Facebook sincerely hope that you buy sloppy seconds of Facebook's IPO. The AAPL sell-off to create dry powder for the Facebook IPO doesn't hold water when you look at the price action of companies like GOOG and AMZN which should've dumped in lock-step w/ AAPL if the theory holds. AAPL simply went up absurdly quickly and now it's seeking its level. The bulls were in control of the stock for a few months and the bears have had it for the last 6 weeks. The stock market has only behaved like this for the last 150 years or so. What's the problem? AAPL traded at $366 around Thanksgiving. It's up over 45% in that time frame. What, you can't get by on a 90+% annualized return?
    17 May 2012, 10:47 PM Reply Like
  • muoio
    , contributor
    Comments (2957) | Send Message
    Well it is 4pm Friday and FB finished at $38.10.


    And Mark has all the money.....Is this a great country or what?


    Wait for Monday w/o the underwriter support.


    Buckle up for a massive thud.


    FacePlant coming.


    Good trading
    18 May 2012, 04:09 PM Reply Like
  • what do I know
    , contributor
    Comments (1049) | Send Message
    It is like the Tulip mania!
    19 May 2012, 09:35 AM Reply Like
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