In class,  we analyzed the trend of Apple’s stock prices in the last year noting that its stock prices increased by 50%. We also discussed how Google earnings missed expectations October which caused shares to decrease by 11% as investor’s confidence in the company’s future cash flow decreased. This made me wonder if the stock prices of Apple decreased when Steve Jobs resigned as CEO in August 2011. Did investors have less confidence in Apple due to the resignation of its innovative leader?

The article “Apple stock drops as Steve Jobs resigns chief executive role” by Graeme Wearden, reports that a 3% fall in Apple stock wipes $10 billion off the company’s value, as investors fret over a future without its visionary leader. Contrary to this, Michael Gartenberg, research director at Gartner, makes a valid point saying, “while this marks the end of an era for Apple, it’s important to remember that there’s more to Apple than any one person.” Its interesting to see that Job’s resignation would have such an impact on stock prices. Apple consists of a massive team, not just one individual, that drives innovation at Apple. Do investors not have faith in the rest of the team? This shows that fear of change and uncertainty consistently encourages one to act impulsively, even in the realm of finances.