Apple stock price sinks slightly on news of Jobs resigning

25.08.2011
's stock price dipped on Thursday on news that co-founder and CEO , to become the company's board chairman. Few companies are as closely associated with their chief executive as Apple and Jobs, but investors seem to think he's left behind a strong company with good leadership.

Apple's share price started Thursday at just under $371, off about $5 from its close Wednesday night before the news of Jobs' resignation was released. After the announcement yesterday, the stock declined by about 7%. Today, the price has bounced around and climbed back to about $373 by noon EDT, then slid gradually again. Just before 2:30 p.m. EDT, as this was being written, the .

BACKGROUND:

For most of the year to date, the share price has been under $360. It began rising fairly steeply in late June, following the company's annual developers conference. The 52-week range is $235-$404. On Aug. 9, Apple actually , topping Exxon, with a market value of $341.5 billion. 

Market analysts were quick to encourage investors to stick with Apple's stock, according to a in The Wall Street Journal's MarketBeat blog. "While the stock could see some immediate headline pressure, we expect sentiment to rebound through next year with strong execution and new product cycles," according to Barclay's Capital, quoted in the piece.

"We think the impact from Steve Jobs is lasting, cementing Apple's role in the digital age," writes J.P. Morgan. The investment banker, echoing others, had praise for the new CEO, Tim Cook, who has been chief operating officer. "As COO, Mr. Cook has been integral to driving the company's unprecedented revenue and earnings growth phase, [and] limiting disruptions to the operations."