updated 08:30 am EST, Mon March 15, 2004
Prudential warns on AAPL
CBS Marketwatch notes that Prudential Equity has issued a regarding the recent run-up of Apple's stock price. "We believe that recent investors, lured by the success of the iPod and iTunes (and associated opportunities for higher CPU attach rates) have been the driving force behind near-term momentum in the shares. Market speculation around potential Sony takeover also may have contributed. Following recent checks, we believe that the quarter is likely tracking in-line with our estimate for a 10 percent sequential revenue decline to $1.805 billion, and earnings of 9 cents per share. We are concerned, however, that at current price levels, investors may be expecting material upside in the quarter." Shares of Apple have risen about 20 percent this month.