How will Wall Street calculate the loss of Steve Jobs?

How will Wall Street calculate the loss of Steve Jobs?

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?

SHARE:
TOPICS: Apple, Banking
8

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.


Topics: Apple, Banking

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

8 comments
Log in or register to join the discussion
  • To be correct, the capitalization is about $360 billiion, not $260 billion

    Also, the markets "written off" Jobs long time ago, since his health issues were obvious. So nothing much could happen with Apple stock now.
    DDERSSS
    • RE: How will Wall Street calculate the loss of Steve Jobs?

      @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 $).
      Laurenzo221
  • The fools will sell

    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.
    ron.cleaver
    • I have to say that's very cynical, Ron.

      @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.
      peter_erskine
  • RE: How will Wall Street calculate the loss of Steve Jobs?

    When was this written? Because their Market Cap is $350 Billion
    DreyerSmit
  • RE: How will Wall Street calculate the loss of Steve Jobs?

    iuuuuu!!!!
    yaque
  • Probably not much

    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.
    John L. Ries
    • I agree. Wall Street and investors don't care about people

      @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.
      William Farrell