Apple Inc. Stock Sinking To $80 On Jennifer Lawrence’s Nude Photos And China Labour Watch Report
By Athena Yenko | September 5, 2014 2:23 PM EST
On Wednesday's close, Apple Inc. (NASDAQ:AAPL) stock dipped from a high of 4.22 percent closing at a low of $98.4. According to real time data quote published by NASDAQ OMX as of Sept 4, the stock is at $98.28 down by 66 percent; 52 week high at $103.74 and low at $63.8886.
The Apple logo is pictured inside the newly opened Omotesando Apple store at a shopping district in Tokyo in this file photo taken June 26, 2014. Apple Inc posted a worse-than-expected 6 percent rise in quarterly revenue July 22, 2014, after selling 35.2 million iPhones into an increasingly competitive smartphone market. Picture taken June 26.
The reported iPhone 6 release on Sept 9 could only do so much to lift the stock price. If the decline continues, Apple Inc. (NASDAQ:AAPL) could reek to $80 in a perceivable long period, Brian Kelly of CNBC thinks. Kelly attributed the stock's dive with the panic created after two major players attempted to withdraw their shares of the stock.
Guy Adami conceded. He remains bearish on the stock as he perceived it could trade at lows from $88 and $89 if the dive persists.
Watch the whole discussion here.
The Jennifer Lawrence's nude photo hack could also be pulling the stock down to a pit, a separate report from CBC said. The controversy was attributed to a security flaw with Apple's iCloud system. Although the company had issued its official statement on Sept 2, it did not lift the stock price up during Wednesday's closing.
According to an official statement from Apple Australia, the company immediately mobilised all its engineers to track down the source of the hacking. After more than 40 hours of investigation, it found that certain celebrities were compromised through a very targeted attack on user names, passwords and security questions.
"None of the cases we have investigated has resulted from any breach in any of Apple's systems including iCloud® or Find my iPhone," Apple said.
Another factor that could take a toll to the stock is the report from China Labour Watch in collaboration with Green America released on Sept 4.
Key points of the report titled, ChinaLaborWatch-GreenAmerica.pdf" rel="nofollow" target="_blank">Two Years of Broken Promises - Investigative Report of Catcher Technology Co. Ltd (Suqian), an Apple Parts Manufacturer:
- Significant amounts of aluminum-magnesium alloy shreddings on the floor and dust particles in the air (this dust is both flammable and combustible). Lack of proper ventilation poses a health andfire safetyrisk
- Inadequate personal protective equipment (PPE) for handling toxic materials, such asmetal cuttingfluids. Skin is exposed directly to these toxins and there are no ventilator masks
- Locked safety exits. There is no means of rapid egress if there is a fire or explosion.
- Workers have not participated in fire drills in the past year
- A lack ofsafety trainingfor workers
- Dumping of industrial fluids and waste into groundwater and nearby rivers
- Many student workers (16-18 years old) are employed in the same positions as adults, 10+ hour days
- Excessive hours for all workers, including student interns
- Forced overtime. Workers are not allowed to turn down requests they work overtime
- An estimated 6 hours ofunpaid overtimeper worker per month (Roughly $290,000 in owed wages for all employees)
- Hiringdiscrimination based on age and presence of tattoos
- A grievance process that retaliates against workers for raising valid workplace issues
On a positive note, CNBC'c Pete Najarian remains bullish on Apple stock.
"I still think at some point in time this stock gets to $110, I think in the short term we still could test somewhere near that $105 may be even push up towards, that $107, that's why I bought those options I like the paper," Najarian said.
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