Apple's stock down over 12% after-hours
updated 05:50 pm EST, Tue January 22, 2008
Apple shares plummet
Apple's shares plummeted in after-hours trading today, nearly $19 per share or just over 12 percent to stand at $136.82 as of 5:35PM ET. Shares had already lost about 3.5 percent during normal trading hours on volume of about 85 million. That means Apple's shares are off more than 30 percent from their 52-week high of $202 reached in late December, 2007. Propelling the earnings decline was Apple's earning forecast. For its second quarter, Apple expects earnings of about 94 cents per share on about $6.8 billion in revenue. Analysts expected earnings of $1.09 per share on revenue of $6.98 billion. This despite the fact that Apple is predicting a 29 percent increase in revenue year-over-year, while last march revenue grew only 21 percent.
Earlier in the day, Apple posted revenue of $9.6 billion and net quarterly profit of $1.58 billion, or $1.76 per diluted share for its fiscal 2008 first quarter ended December 29, 2007. The Company said that the results compare to revenue of $7.1 billion and net quarterly profit of $1 billion, or $1.14 per diluted share, in the year-ago quarter. Analysts surveyed by Thomson Financial had forecast Apple to earn $1.62 a share on revenue of $9.47 billion.
Steve Hach, a senior analyst at forecaster ValuEngine, is one of the few pundits who accurately predicted the current state of Apple's stock price. In early Dcember, he said "In a perfect world, our computer model would set Apple's stock at about $135. "Apple is far more overvalued than Google, Intel, or Microsoft."
Other analysts were extremely bullish on the stock. Piper Jaffray senior analyst in late November said "We are adding Apple to the Alpha list, expecting material upside in the next 90 days," Piper Jaffray's Alpha List serves as a spotlight on the potentially fast-growing stock prices of companies which are likely to experience major gains in the near term, usually as a result of catalyst events. The analyst reiterated his "Buy" rating on Apple shares with a price target of $250.
ah, wall street...
01/22, 06:08pm reply
you're like a woman ... no one will ever truly understand you; fickle b**** that you are.
Rezzz
Fresh-Faced Recruit
Joined: Jan 2006
great time to buy
01/22, 06:42pm reply
solid company, great products in the pipeline, and a whack of cash in the bank
legacyb4
Mac Elite
Joined: May 2001
hopefully
01/22, 06:58pm reply
all the day traders will sell for huge losses thereby allowing the long-range investors to gobble up stock and earn huge rewards, but...
rezzz, stop dating that woman! :P ;)
Flying Meat
Fresh-Faced Recruit
Joined: Jan 2007
What's up Apple?
01/22, 06:59pm reply
This is so odd that Apple stock just keeps on dropping. Im still making money off of Apple stock but this is very disappointing to see them drop in value so fast.
magicbumone
Junior Member
Joined: May 2007
hey geniuses
01/22, 07:15pm reply
Look at the rest of the stock market lately? - the WHOLE thing is down. Nothing "odd" about it, except people not knowing what they are talking about.
I'm off to buy more as soon as the market opens.
Doofuses.
robttwo
Fresh-Faced Recruit
Joined: Nov 2005
waiting for bottom...
01/22, 07:24pm reply
...then buy mucho mas :-)
rtbarry
Fresh-Faced Recruit
Joined: Aug 2001
bottom?
01/22, 07:41pm reply
> waiting for bottom.. So, what number will be “bottom”?
CVB
cvbcvb
Fresh-Faced Recruit
Joined: Nov 2003
hold at 200-day MA
01/22, 08:11pm reply
Institutional investors should open up their valves after the headline-readers unload at the bell. The former will keep aapl above its 200-day ma by close. The call said nothing to sway the savvy from continuing to apply a 40-50 multiple on this flyer, especially w/ an '08 earnings growth rate predicted at 30% while the S&P500's is down to 4.5%. It's sitting on so much cash. Share buyback! Ya hear that, board of directors?
moteltan
Fresh-Faced Recruit
Joined: Aug 2007
2 rules to live by..
01/23, 12:13am reply
never take dating advice from someone whose nick is 'flying meat'.
never take financial advice from someone who finishes every post with 'Doofuses'.
on second thought, maybe taking dating advice from flying meat is okay afterall.
Rezzz
Fresh-Faced Recruit
Joined: Jan 2006
selling on good news
01/23, 10:49am reply
yeah, it's nothing new. people tend to sell when there's good news "omg! there's no waaay they could do so well again--I'm cashing out now!", which causes the stock to plummet and then they feel justified.
Apple will have another fantastic year, unleash even more cool products, and the stock will rise again.
Hobeaux
Junior Member
Joined: Mar 2002