4 Reasons Apple Won't See $700 Again

Focus: STOCKS

Howard Gold Image Howard Gold Founder & President, GoldenEgg Investing

Shrinking margins and more effective competition are just two links in the chain pulling the tech giant back to earth, writes MoneyShow's Howard R. Gold, also of The Independent Agenda.

Last September was a great time to be an Apple (AAPL) shareholder. The stock topped $700, capping a remarkable run in which the shares practically doubled since July 2011.

Even more extraordinary, much of Apple’s huge advance came after the death in October 2011 of its founding genius, Steve Jobs. Nothing could stop this juggernaut, it seemed.

It’s been downhill ever since. From its closing peak of $702.10, Apple shares plunged by 37.4% as of last Friday, when it closed at $439.88. It’s bounced back a bit, but when the world’s most valuable company loses that much in just four months, something must be seriously wrong.

It is. Apple’s competitive position has seriously weakened, and investors are recalibrating their outlooks. Tailwinds have turned into headwinds as tangible and intangible issues alike weigh heavily on the shares.

Apple has lost the mantle of the greatest growth stock of our era; it may no longer be a growth stock at all. (The company said executives were not available for interviews.)

Here are four reasons why I don’t think Apple’s stock will see $700 again:

1.