Only one day after Apple’s shares climbed to a record post-split high of $103.74, they plummeted over 4 percent as Apple’s iCloud security breach reached headline news.
Apple’s iCloud, an online storage system for personal customer content ranging from music to inappropriate photos of famous celebrities, fell victim to hacker ingenuity in early September. What was supposed to be a simple and secure way to store one’s electronic information, became Jennifer Lawrence’s and many other famous actors’, like Kate Upton and Kirsten Dunst, worst nightmare.
The leaked photos of the celebrities in their birthday suits knocked the value of an Apple share down $4.55 only a week before the release of the long-awaited iPhone 6. This drop caused a frenzy of trades with over 94 million shares changing hands, versus its 50-day moving average of 45.8 million shares. More than 60,000 Apple options with expirations on Sep. 12 and a strike price of $107 were executed as a result as well. Even worse to note is the $26 billion loss in Apple’s market value following the breaches disclosure.
Tim Cook, the chief executive officer filling the shoes of Steve Jobs, discussed the new security features that will be implemented on iCloud with the Wall Street Journal. New password protection features, such as a two-step verification, will help to ensure that a detrimental hacking like this will never happen again.
Whether now is a good time to buy, or after the stock gains momentum from the iPhone 6’s debut, is up to the discretion of the investor. Needless to say, the stock will see some heavy activity.
Apple intends to unveil new products that require customers to provide their health and financial information with the company; it is yet to be seen exactly how customers will react to these products. Even with the negative media attention surrounding Apple security the shares are still up 25 percent for the year.
By Ryan Remigio