Apple shares dropped following the massive nude leak and new investor recommendation to sell Apple shares. Apple has been hit following reports that the leaked nude photos of celebrities like Jennifer Lawrence were due to a flaw in the iCloud security. Whereas as Apple's shares reached all time high the previous week going beyond the $100-mark, this week Apple stock took a dip below $100 casting doubt whether the release of the iPhone 6 and other products will also be affected. It may also not be case as people have started lining up in front of the Apple Store in New York on Fifth Avenue.
According to NDTV, Apple shares went down by as much as 4% last September 4. It has been the most considerable and worst drop dating back to January. The tech giant received flak after Kirsten Dunst criticized the iCloud and several developers pointed that Find My iPhone is not built to sustain brute force attacks. The report also noted that Apple stock when down to $99.15 (as much as $3.57) last September 4. Around 87 million shares changing hands. This has gone past the 50-day moving average concerning around 45.8 million shares.
Business Insider also reported Pacific Crest Securities analyst Andy Hargreaves recommending to sell Apple shares and make profit before the September 9 event and the iPhone 6 launch. "Unless next week's event details massive incremental profit opportunities, we are likely to downgrade (Apple's) rating," the analyst said.
On other side of the spectrum, Apple already issued a statement saying that it has started investigating what went down with its "supposed" iCloud vulnerability and the hacking incident. According to MarketWatch, it may take more than a hacking incident to dampen investor thoughts about the company as it appears they are more interested over the launch of the iPhone 6 than the leaked nude photos.
According to Global Equities Research Trip Chowdhry, the hacking incident is not an ideal situation but it is normal. In a world where everything is connected, devices and technologies are subject to occasional breaches. "It shouldn't be considered a 'Wow' event," Chowdhry shared with MarketWatch.
"The real excitement is what will happen next week." The analyst added.