Steve Jobs' Resignation Was Already Priced In

This article is part of our Rising Star Portfolios series. Click here to follow Jason on Twitter.

On Wednesday, Apple (Nasdaq: AAPL  ) co-founder Steve Jobs resigned his position as CEO of the company. Trading was halted briefly before the news was announced, and after the announcement the immediate reaction was no real surprise: Apple stock sold down 5% in after-hours trading.

But was this really news? It's not like we weren't aware that his health has been deteriorating. COO Tim Cook stepped up once more to take the reigns as acting CEO at the beginning of 2011 as Jobs took another health-related leave, and it was anyone's guess at the time when he would return. Given Cook's experience with the company, he has led quite effectively during very uncertain times. So it only seemed natural that Jobs strongly recommended Cook to replace him as CEO.

Let's also not forget that Mr. Jobs will hold the position of chairman, so while he won't be as much a part of the day-to-day operations, Apple will still benefit from his vision and innovative spirit. So it came as no real surprise to me the following day that Apple's stock didn't sell off and investors everywhere didn't freak out. The way some of the headlines read it sounded more like an obituary than a CEO stepping down. Competitors like Microsoft (Nasdaq: MSFT  ) and Google (Nasdaq: GOOG  ) better not let their guard down; Apple is still as great as ever.

Of course, we hate to see this news as it's another sign that Mr. Jobs' health isn't getting any better. I am firmly convinced that he will always be remembered as one of the greatest innovators and CEOs of all time. On Wednesday evening I spoke with John Phillips on his radio show at 790 KABC Talk Radio in Los Angeles about the news. Simply click here to listen to our conversation.

Stock Advisor analyst Jason Moser owns no shares of any companies mentioned. The Motley Fool owns shares of Apple, Google, and Microsoft. Motley Fool newsletter services have recommended buying shares of Microsoft, Google, and Apple. Motley Fool newsletter services have also recommended creating a bull call spread position in Microsoft and Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (1) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 28, 2011, at 12:27 PM, jekoslosky wrote:

    I agree that the Resignation was already priced in. I also wonder what this means for Berkshire Hathaway post-Warren Buffett. Is Buffett's retirement also already priced in?

    I wrote more about that here: http://bit.ly/o2glFA

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1545041, ~/Articles/ArticleHandler.aspx, 11/22/2014 4:06:03 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement