On news that Apple CEO Steve Jobs has resigned, Apple stock has taken a hit in after hours trading, dropping 5% in just the short time since Apple made Job’s decision public.
Investors, afraid of uncertainty and change, are pulling back to see if Apple can survive without Steve Jobs. Up until this announcement, Apple had been performing well on Wall Street, taking the title of the most invested in company in the U.S. at least once.
Steve Jobs announced that he has resigned from Apple after years of service. In a press release, Jobs has recommended that the Board choose Tim Cook, the COO of Apple, to replace Jobs as the CEO of the company.
Cook has been handling day-to-day operations, but Jobs has still had a big hand in the creation of successful products like the MacBook Air, which is hard to keep on the shelves and in the creation of the iPhone 5.
Upon hearing this news, the Apple stock (AAPL) reacted by taking a 5% dive in after hours trading. This is pretty early on, but investors are concerned that without Steve Jobs, who is largely credited with saving the company, Apple will not be able to continue the upward trajectory.
Stock of other tech companies like Microsoft, Intel and Dell are also down after hours, but only by about half a percent. It will take some time for the fallout to occur, but given the speed with which Apple stock is dropping after Steve Jobs’ resignation it could be a bumpy few weeks for investors in Apple.
The good news is that Jobs will remain on as Chairman of the Board and Tim Cook has a host of experienced Apple leaders like Johhny Ive to help direct the future of the company.