Apple shares mixed following Steve Jobs death

SAN FRANCISCO (MarketWatch) — Shares of Apple Inc. put in a mixed performance Thursday morning following the death of iconic co-founder and Chairman Steve Jobs. 

Reuters

Apple co-founder and Chairman Steve Jobs died on Oct. 5 following a long battle with cancer.

The stock first traded in the red following the opening bell, as investors digested the loss of the 56-year-old tech visionary who had run the company since 1996 until stepping down six weeks ago, due to failing health.

The shares later reversed — moving up nearly 1% to $381.94 at last check — as analysts recommended buying the stock on any weakness, saying the company is in good hands under its current management team.

Apple /quotes/zigman/68270/quotes/nls/aapl AAPL -0.29%  announced Jobs’s death late Wednesday. Tim Cook, a 13-year company veteran who had been previously serving as chief operating officer, was named to the CEO spot in August when Jobs stepped down from the post. Read full story on Steve Jobs' death. 

While shareholders have long known of Jobs’s battle with pancreatic cancer and associated complications, analysts said Apple’s stock is likely to come under some mild selling pressure as investors adjust to the reality of the company operating without his oversight.

 

Jobs's death, and Apple's Future

AllThingsD's Kara Swisher discusses the what the impact of Steve Jobs's death will have on Apple and whether the company will remain an innovator and market leader. Photo: Getty Images

“While expectations for Mr. Jobs’ involvement as chairman were likely small given his health problems, he was still potentially available as an adviser and leader in the background,” analyst Ittai Kidron of Oppenheimer & Co. wrote in a note to clients. “This intangible is no longer available, and we expect it will weigh on the shares over the next few days.” 

Kidron reiterated his positive view on the stock, expressing faith that the ability of the current management team “to execute on this course will continue at a high level.” 

Shaw Wu, analyst with Sterne Agee, said Apple’s shares may see some near-term pressure as “Cook gains confidence from investors.” He recommended buying up the shares on any weakness. 

“We continue to believe that Apple is positioned to outperform in this tough macroeconomic environment with its defendable strategic and structural advantages and its vertical integration,” Wu wrote. 

Under Jobs, Apple amassed a strong track record with the runaway success of products like the iPod, the iPhone and the iPad. The iPhone now accounts for nearly half the company’s revenue base, and the iPad currently holds about two-thirds of the market for tablet computers, according to most analyst firms. 

“While Mr. Jobs’ passion, creativity, and keen eye for consumer preference will be missed, we believe Jobs and Apple’s executive team have built an unparalleled talent base and corporate culture that sets the table for future success and innovation,” wrote analyst Mike Walkley of Canaccord Adams. 

Apple remains hugely popular with Wall Street brokers. About 95% of the analysts covering Apple rate the shares as a buy, with only three neutral views. The stock is also below all of the price targets set by analysts.