Apple’s stock is feeling the pain of economic crisis that is currently threatening the U.S. economy. Today, after downgrades from two different analysts, Apple’s stock has plummeted almost $20 a share as I write this.
Mike Abramsky of RBC Capital downgraded the company from “Outperform” to “Sector Peform” with a new stock target at $140 – down drastically from his previous target of $200. His reasoning for this is because of a “worsening consumer spending environment”.
Morgan Stanley’s Kathryn Huberty has also changed the status of Apple’s stock from “Overweight” to “Equal Weight” and dropped her target price from $178 to $115. She states that “even in the best of scenarios, AAPLâ€™s EPS growth will decelerate meaningfully from June quarter levels.”
Also – for those of you that are curious I have downgraded Apple’s status as well from “Bigish” to “still-kinda-bigish-but-not-as-bigish-as-I-was-thinking-before”, and I have changed their estimates from “two pots” of leprechaun gold, to only “one and a half” of the wee little man’s treasure.
Truth be told – these people have no clue what sales are going to be like – but it is highly likely that if its harder for American’s to get credit, they will be buying fewer expensive electronic gadgets.
So sometime in the next few days, once this had bottomed out – MIGHT be a good time to buy (not that I’m giving you investing advice…because I’m not. I know even less than these goofballs.)
come on guys, since when is there any rational sense in the stock market? this is just the way things “work” over there. and yeah, i hate it too.
wait till the iTabletron 2000 comes out… the stock is going to soar.
Is it just me, or does it seam that “analysts” get to dictate the economy…? They can just make stuff up… If they said “Tomorrow we’re expecting a record fall in the DOW”
IT WOULD ACTUALLY HAPPEN… Just because they “predicted” it. When otherwise it wouldn’t have.
Analyst: “there is a slight breeze off the gulf coast today, gas prices are expected to reach an all-time high as a result.” [panic ensues]
That’s exactly what I find so damned annoying about them. It seems like they can say whatever they want with little to no research and have it affect the entire stock market. It’s actually kind of frightening when you think about it.
And yes…the iTabletron 2000 will save us all.
Yea this really pissed me off this morning when I looked at my stocks. These idiots, anything they say and people freak out and the stock drops. They didn’t even say Apple was going to do bad, just not as great as they expected. Apple is already outperforming the industry, just because they are going to grow by say 5% instead of 7% the stock plummets, Apple’s still climbing ffs, they make it as if Apple has hit rock bottom and is back to square one.