Massive swings for Apple, Google show “fear index” on the rise
by Alec Hogg
After Google delivered pleasing quarterly results last Thursday, the share price surged, adding a staggering $65bn to the company's market capitalisation – the biggest one day gain in value for any business ever. It took Google's market cap to $450bn (enough to fund SA's total State spending for five years) – elevating it above the pack into clear second place worldwide.
Then on Tuesday night, Apple Inc did the exact opposite. Despite reporting record profits and higher margins, traders hated that Apple's iPhone sales were "only" 35% higher year-on-year (and 87% up in China). The shares were sold off, slicing $66bn off the world's most valuable business, now worth $750bn.
Old-timers tell is the time to start fretting about a possible Market Crash is when volatility suddenly starts to rise. Judging by this week's swings in prices of these massive enterprises, the "fear" index is certainly growing.
Yesterday's top stories:
Why Zuma doesn't give a fig about the West, Visas or values
Errol Musk: "Elon was beaten so badly, I couldn't recognise him."
Draft BEE regulations must be rejected – pushing SA over a fiscal cliff
Brilliant: Cees Bruggemans on SA following the road to repeating Zimbabwe
Paul Mashatile: It's time to nudge the sleeping giant – Worker Capital
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