The tortoise passed the hare Friday when Apple (AAPL) fell from its lofty perch as the world's most valuable company, returning Exxon Mobil to the top.
Fears over slowing growth for Cupertino-based Apple prompted investors to jettison the tech giant's shares, which nose-dived 2.4 percent Friday and ended at $439.88. Texas-based Exxon rose 0.4 percent to close at $91.73.
Despite the end of Apple's 12-month reign as the world's No.1 company, some Bay Area investment experts analysts believe sentiment toward Apple has turned too gloomy -- just as the
excitement about Apple over the previous months was too euphoric.
"Apple has great prospects for the future, but I do believe the optimism about Apple was overdone," said Michael Yoshikami, founder of Walnut Creek-based Destination Wealth Management. "It rallied more than it should have, a rally based on the hysteria over the company."
Christopher Giordano, principal owner of Los Gatos-based Giordano Wealth Management Group, said that Apple, despite its fall, "is still a terrific company with a great balance sheet, a great product line, tremendous innovation, and that could make this a good entry point to own Apple."
Apple most recently passed Exxon in market value in late January 2012, after the energy giant had been on
top of the heap for a considerable time.
"We love energy stocks as a sector and have those in our portfolio," Giordano said. "An incredible energy renaissance is going on in this country. This is just a beginning of an upswing in energy in the United States."
Apple stock has slumped 17 percent so far this year. That was the worst decline of any company in the broad-based S&P 500 Index.
The selling of Apple's shares Friday lowered its
market capitalization to $413 billion, trailing Exxon's $418 billion. The 2.4 percent decline of Apple stock followed a 12 percent plunge Thursday after a mixed earnings report Wednesday. That was the worst one-day decline for Apple since 2008.
"Apple was getting a bit ahead of itself," said Eric Heckman, principal executive with San Jose-based Heckman Financial. "The current price is a more realistic number."
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