Yesterday wasn’t a great day for Apple’s stock, although it’s safe to say that things could have been worse. At the close of trading for the day the stock was down $6.27 with over 42 million shares changing hands according to TUAW.
More upsetting for Apple, I would assume, is the downgraded status Oppenheimer Funds placed on the stock after the Macworld announcement. Oppenheimer analyst Yair Reiner has cut the ratiing of the stock from “outperform” to “perform” based almost solely on the fact that Steve Jobs will not be giving the Keynote address at the Macworld Expo this year.
Yair explained his reasoning in a note to clients stating: “we don’t know why Steve Jobs has pulled out of his annual address at Macworld […] Whatever the reason, the unexpected announcement has underscored the greatest risk to Apple’s long-term success — its dependence on Jobs’ health and its apparent lack of a succession plan.”
“S&P REITERATES STRONG BUY OPINION ON SHARES OF APPLE INC. (AAPL; 89.94):
AAPL announces that it will no longer participate at the MacWorld Conference & Expo after 2009, and that CEO Steve Jobs will not deliver the keynote speech at the show next month. We believe that AAPL’s decision to scale back on trade show appearances is understandable, given its extensive customer reach and brand awareness. But we think that Job’s absence adds to concerns regarding his health and future leadership of the company. Nonetheless, we maintain our strong buy opinion based on our favorable view of AAPL’s computer and handheld businesses and attractive valuations. -T. Smith-CFA, C. Montevirgen”