AAPL downgrade reversed, marketcap grows to 4x Dell's
updated 01:40 pm EDT, Mon May 5, 2008
AmTech
American Technology Research analyst Shaw Wu has reversed a prior downgrade on share's of Apple Inc, changing his rating on the stock to from Neutral to Buy. Wu's downgrade came right before Apple's blowout March quarter, in which the company announced record revenues on surging Mac sales. Barrons quotes Wu: "We overestimated the potential negative reaction on the quarter and in hindsight should have moderated our near-term posture rather than downgrading. While AAPL shares will likely remain volatile and may offer a better entry point, we need to align our rating with our longer term view on fundamentals." Wu has set a $210 price target on Apple's stock. Barrons also notes that RBC Capital's Mike Abramsky has raised his target price on Apple to $220 from $200, predicting that Apple will sell 14 million iPhones this year.
In related news, Apple's valuation is now more than quadruple Dell's. Apple's shares are currently trading up $3.35 or 1.85 percent to $184.29, yielding a market capitilization of $162.4 billion, while Dell howevers at abou $19 per share yielding a market capitilization of $39.13 billion.
Imagine that.
05/05, 02:02pm reply
Wu is an idiot! He cried wolf for no reason and now they're eating there words or gaining on the market manipulation they pulled to lower Apple's stock price so they could buy more shares. Knowing full well that the price of the stock would go up. Hopefully some ANALysts will get a clue and not take this guy seriously anymore. There was no evidence to show Apple was headed anywhere but UP.
horvatic
Fresh-Faced Recruit
Joined: Apr 2002
Imagine that.
05/05, 02:02pm reply
Wu is an idiot! He cried wolf for no reason and now they're eating there words or gaining on the market manipulation they pulled to lower Apple's stock price so they could buy more shares. Knowing full well that the price of the stock would go up. Hopefully some ANALysts will get a clue and not take this guy seriously anymore. There was no evidence to show Apple was headed anywhere but UP.
horvatic
Fresh-Faced Recruit
Joined: Apr 2002
Translation
05/05, 02:09pm reply
We have no idea how to evaluate Apple's stock or the company. We suck and should be ignored.
Move on, nothing to hear here...
mgpalma
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Joined: Sep 2000
slap the cuffs on...
05/05, 03:05pm reply
Either this guy is really stupid or he's really clever. Either way, I think he should be investigated by the S.E.C. This isn't just a straight forward "...my bad!" This pillock has responsibilities that go with his influence!
Feathers
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Joined: Oct 1999
Re: Imagine that
05/05, 03:07pm reply
Well, I'm not sure what you mean about 'some analysts will get a clue'. Wu is an analyst. Wouldn't you hope other analysts are doing their own analyzing, and not just listening to other guys (otherwise, why not just go to the one doing the 'real' work).
testudo
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Joined: Aug 2001
this never, ever gets old
05/05, 05:30pm reply
"Apple's valuation is now more than quadruple Dell's"
The only fair thing for Michael Dell to do, would be to liquidate and distribute the proceeds to shareholders.
climacs
Fresh-Faced Recruit
Joined: Sep 2001
i doubt
05/05, 05:33pm reply
that the recommendations of a single analyst would cause AAPL to lose a significant chunk of its value. I don't see any evidence of an attempt to manipulate stock price. Wu got it wrong.
Bottom line: don't base your stock-picking solely on what analysts say. You'd do better reading goat entrails or throwing darts.
climacs
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Joined: Sep 2001
Give Wu Credit....
05/05, 06:37pm reply
...mosts analysts will not admit they made a mistake, or were in error. Wu admits so, and corrects himself.
While I don't always agree with Wu, he is generally pretty accurate in picking up on AAPL trends, based on what the company does (not stupid numbers analysis, like most of his colleagues).
As analysts go, Wu is one of the better ones.
ZinkDifferent
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Joined: Jan 2005
Wu stated...
05/05, 11:12pm reply
...Um, oops!
ClevelandAdv
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Joined: Jul 2004
Well...
05/06, 01:50am reply
Wu said almost a year ago that Apple would get to 210 and I sort of thought that was major speculation, but in the end he was probably right.
MacnnChester
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Joined: Jun 2007