Although the opening numbers meant that Apple lost some $19 billion in market capitalization as a result of what was probably reaction to the announcement that Steve Jobs was taking his second medical leave of absence since 2009, it was expected by most analysts. They also expect that long term, the company will do fine.
What is being seen on Tuesday morning is the public's reaction to the announcement that Jobs, whom many see as man who saved Apple (and the Marketwatch CEO of the Decade), to boot, is again leaving the company for an extended period of time. This time, some speculate, he may retire.
With COO Tim Cook, however, the company is in good hands. When Jobs left in 2009, Cook held the reins, and the company did not miss a beat. In fact, analysts continue to be upbeat on Apple stock: Goldman's Bill Shope recommended buying on any price weakness, and repeated his 12-month target price of $430 for the stock.
The company appears to have timed its announcement well. Not only did they announce Jobs' medical leave on a U.S. banking holiday, Martin Luther King Jr. Day, after the close of the market today the company will announce its latest quarterly earnings. There is no doubt that Jobs' health will be a focus of the post-announcement conference call.
