BEIJING - In the early hours of August 26th, Beijing time, Apple CEO Steve Jobs announced his resignation from the position of CEO and will take on the role of Chairman instead. Current COO Tim Cook will become the new CEO of Apple. On Thursday, Apple's stock closed down by $2.48 at $373.72, a decrease of 0.65%.
After Jobs announced his resignation post-market on Wednesday, Apple's shares plummeted by as much as 7% in after-hours trading that day. Apple closed at $576.18 on Wednesday and opened at $365 on the following day.
Morgan Stanley analyst Mark Moskowitz stated, "We expect pressure on Apple's stock price, but not a sharp decline, as investors have already factored in the possibility of a CEO change at Apple."
Market research firm Needham & Co. analyst Charlie Wolf also made similar remarks, saying, "Much of the premium associated with Jobs had already been removed before his announcement of resignation yesterday. However, some of this premium still remains since Jobs could potentially recover and return to the CEO position."
Most observers believe that regardless of whether Jobs is present or not, Apple's strategic direction for the next two years has already been set. Oppenheimer analyst Ittai Kidron said, "Apple still retains the ability to execute this strategy well and there is room for further growth in both smartphones and tablets."
Morgan Stanley released a report today reaffirming its "overweight" rating on Apple and maintaining a target price of $468, stating that Jobs' resignation as CEO was anticipated by the market and that now is the right time for Cook to take over. The report believes that given Apple's upcoming product launches and accelerating growth in key markets, the timing of this CEO transition is appropriate. Goldman Sachs also issued a research report maintaining its "buy" rating on Apple with an unchanged target price of $480. Bank of America Merrill Lynch also maintained its "buy" rating on Apple with an unchanged target price of $490.
Looking back, after Jobs' previous announcements of medical leaves, Apple's stock prices fell on average by 7%. However, within one month, two months, and three months after Cook took over the responsibilities, Apple's stock prices rebounded by 11%, 12%, and 21%, respectively. Although Jobs has now completely stepped down from the CEO position, it at least removes uncertainty regarding the succession plan for Apple's CEO. Based on the current trend of Apple's stock price, investors have largely digested the news of Jobs' resignation.