Does the price volatility of the Apple stock signal something?

The recent AAPL stock price as reported in the fourth quarter showed just how disappointed the investors were the stock price of Apple fell up to 5% and the per-share value dropped to $110 for the first time since the month of September.

The mystery

Regardless of Apple stock value dropping here is the mysterious part. Apple stock price had moved to nearly 5% for three days consecutively, but similar price movements were well in September more than once, they were seen twice. Once it happened when a continuation moved lower and the second one just happened before the reversal became higher.

This means that given any event, the volatility of the price mostly is done before the directional moves happen. After considering the earnings never reported in the quarterly report by Apple, it is considered knowledgeable for the traders and other investors to be focused on the price action and follow it always.

Why focus on the business fundamentals instead of the stock price?

It is not always necessary that if the stock price is lower, the business fundamental for the same stock is going to be higher and well stabled. It is not always the case. In fact, when you are purchasing a stock price at the exchange market, you are supposed to investigate the business fundamentals of the stock and then consider the stock price value.

This way, you will be avoiding losing money in your stock value exchange on your money would not get wasted as well, for example, the recent case of Apple stock split value in the stock market exchange. There was a splurge and an increase during the end of August in purchasing these split stock values because they were given at a lower rate and it seemed like a good price to buy the stocks that to from Apple.

But the investors who invested in buying the split stock values are now suffering a loss of up to 20% because they did not investigate the business fundamental of the split stock value of Apple. Now they must wait for the launch of the new iPhone 12 in order to start investing again and regain from the loss.

Only the investors who have looked into the business fundamentals of the split stock value that is on sale by Apple they have not been associated with any sort of loss and now they can use that money to invest in other proper stock values, for example, Tesla is not going to start it split stop as well just like Apple. Before buying the stock, you can check cash flow at https://www.webull.com/cash-flow/nasdaq-aapl.

Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.