Apple CEO and co-founder Steve Jobs resigned today as chief executive officer from Apple. His place at the top of the company will be taken by Tim Cook, previously Apple's chief operating officer.
In January 2009, Jobs said that he was suffering from a hormone imbalance that was impeding his body's ability to absorb certain proteins. In April of that year, Jobs underwent liver transplant surgery and returned to work by early July. In August 2004, Jobs underwent successful surgery to treat a rare form of pancreatic cancer, which sidelined him until September of that year
While Jobs has announced that he is stepping down as CEO of Apple, he is taking on a new role as chairman of the board. Replacing Jobs as the chief will be Tim Cook. Cook has been at Apple for some time now and has an impressive background in the tech industry. Insiders have said that if there is one person who could continue Apple on its path of innovation like Jobs, it is Cook
Apple shares are down about 5% in after-hours trading following the news that Steve Jobs was stepping down as CEO.
This is to be expected: 5% is not actually a large drop, considering the importance of Jobs to the company he founded. Apple’s share price is astronomical, it’s true. But that isn’t just because of Steve Jobs. It’s because Apple has been producing – increasing its share in the PC market, continuing its performance in smartphones and MP3 players, and just trouncing everyone when it comes to tablets. If Jobs weren’t ill, one could imagine that the stock price would be a good deal higher.
The news comes just as the market had made up some positive ground after several rough weeks for stock prices. In a related note, Gold prices were down in something of a sell off today, closing down over $100 per ounce with a closing price of $1,757.30.
Analysts Not Giving Up On Apple Despite Jobs Leaving
Investors and analysts say they aren't giving up on the company's stock, even after Jobs regins. Still, investors and analysts say they don't question the prospects for a company that has shown repeatedly it can redefine not only technology but itself. They point to products with commanding presences, a marketing well-oiled marketing strategy and $76 billion in cash that can be used for acquisitions, dividends or buybacks.
"Apple not only survives Steve, but it continues to prosper," says Tim Ghriskey, chief investment officer for Solaris Asset Management in New York, which holds Apple shares in a $2 billion fund. "Apple has done a lot to attract very high level creative talent which will perpetuate the creativeness Steve has established."
Ghriskey says Apple might consider buying the 5.5 million shares, or 0.6% of the company's shares outstanding, that Jobs owns. Those shares are worth roughly $2 billion at Apple's current stock price.
Some analysts and investors say any pullback is an opportunity to snap up shares of a company that is driven by enviously strong fundamentals. Apple's stock is up roughly 60% from its year low amid expectations earnings growth will top 80% and revenue will jump by two thirds in the fiscal year ending in September.
They also say Apple will continue delivering hit products because of the culture Jobs has created at the company.
"Tim is molded after Steve," said Colin Gillis, an analyst at brokerage BGC Partners, who recommends buying Apple stock on the dips. "If they got an outside CEO, there might be concern."