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AAPL Stock: 119 ( + 1.4 )

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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.




by MacNN Staff

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Comments

  1. Rezzz

    Joined: Dec 1969

    0

    ah, wall street...

    you're like a woman ... no one will ever truly understand you; fickle b**** that you are.

  1. legacyb4

    Joined: Dec 1969

    0

    great time to buy

    solid company, great products in the pipeline, and a whack of cash in the bank

  1. Flying Meat

    Joined: Dec 1969

    0

    hopefully

    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 ;)

  1. magicbumone

    Joined: Dec 1969

    0

    What's up Apple?

    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.

  1. robttwo

    Joined: Dec 1969

    0

    hey geniuses

    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.

  1. rtbarry

    Joined: Dec 1969

    0

    waiting for bottom...

    ...then buy mucho mas :-)

  1. cvbcvb

    Joined: Dec 1969

    0

    bottom?

    > waiting for bottom.. So, what number will be “bottom”?

    CVB

  1. moteltan

    Joined: Dec 1969

    0

    hold at 200-day MA

    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?

  1. Rezzz

    Joined: Dec 1969

    0

    2 rules to live by..

    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.

  1. Hobeaux

    Joined: Dec 1969

    0

    selling on good news

    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.

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