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Tom Foremski: IMHO

Tom Foremski
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How will Wall Street calculate the loss of Steve Jobs?

By | October 6, 2011, 1:46am PDT

Summary: The loss of Steve Jobs is a blow to Apple, the world’s second most valuable corporation. How will stock markets measure that loss?

The wisdom of crowds will be at work Thursday morning in calculating the impact of Steve Jobs’ death on Apple.

Apple, as the second largest (in market capitalization) company in the world, next to Exxon Mobil, is bound to take a hit in trading.

At around a $260 billion market capitalization, if Apple loses a billion or two in Thursday trading, what does that say about the value of Steve Jobs?

Can investors quantify the value of the loss of an executive such as Steve Jobs?

Whether we agree with the stock market’s reaction to the death of Steve Jobs or not, it is the wisdom of crowds at work. It’s very hard to argue with the wisdom of crowds that back up their opinion with real money. You have to pony up if you want to disagree.


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Topics

Steve Jobs, Apple Inc., Investment, Finance, Tom Foremski

Tom Foremski reports on the business and culture of Silicon Valley at the intersection of technology and media.

Disclosure

Tom Foremski

Tom Foremski is the editor and publisher of Silicon Valley Watcher and Silicon Valley Watch. Tibco Software is an advertiser.

Biography

Tom Foremski

In May 2004, Tom Foremski became the first journalist to leave a major newspaper, the Financial Times, to make a living as a full-time journalist blogger. He writes the popular news blog Silicon Valley Watcher--reporting on the business of Silicon Valley.

Tom arrived in San Francisco in 1984, and has covered US technology markets for leading computer journals around the world.

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I have to say that's very cynical, Ron.
peter_erskine@... 6th Oct
@ron.cleaver@... But I think you're right as I'd predict a maybe one-month-long sales peak. There will perhaps come a shaky time when policy and quality of management aren't known. And if there's any real sign that they're desperately scrabbling around for fresh creativity, THAT's the time to get out.
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To be correct, the capitalization is about $360 billiion, not $260 billion
DeRSSS 6th Oct
Also, the markets "written off" Jobs long time ago, since his health issues were obvious. So nothing much could happen with Apple stock now.
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RE: How will Wall Street calculate the loss of Steve Jobs?
Laurenzo221 6th Oct
@DeRSSS My guess is that it will be hit hard...people on wall street will crush it then buy it back (little people will lose and market makers will make $).
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The fools will sell
ron.cleaver@... 6th Oct
Those who have no idea why they own Apple stock will sell. The knee-jerk reaction is always predictable. And it's a great buying opportunity for me. I keep buying bigger rakes for my profits from Apple stock.

If I were Tim Cook, I would be feverishly preparing a release of the next product innovation, with a special Steve Jobs memorial edition.
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I have to say that's very cynical, Ron.
peter_erskine@... 6th Oct
@ron.cleaver@... But I think you're right as I'd predict a maybe one-month-long sales peak. There will perhaps come a shaky time when policy and quality of management aren't known. And if there's any real sign that they're desperately scrabbling around for fresh creativity, THAT's the time to get out.
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RE: How will Wall Street calculate the loss of Steve Jobs?
DreyerSmit 6th Oct
When was this written? Because their Market Cap is $350 Billion
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RE: How will Wall Street calculate the loss of Steve Jobs?
yaque 6th Oct
iuuuuu!!!!
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Probably not much
John L. Ries 6th Oct
Steve Jobs resigned as CEO months ago and was on leave before that (his own role had been reduced to non-executive Chairman). If Apple's stock price was going to take a significant hit, it would have happened at that time.
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I agree. Wall Street and investors don't care about people
William Farrell 6th Oct
@John L. Ries
they care about profits. If Jobs death really does impact the future of Apple products, then they will sell based on sales figures impacted by his loss, not on the loss of the CEO himself.

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