Apple hit with sharp stock drop following warnings
updated 11:00 am EDT, Mon September 29, 2008
Apple stock drop
The worth of Apple stock has fallen significantly, over $20 as of press time, following warnings from two different analysts. Mike Abramsky of RBC Capital has downgraded Apple's rating from "Outperform" to "Sector Perform," with a new stock target of just $140, compared to an earlier value of $200. His FY08 EPS estimate has slid from $5.28 to $5.26, and in FY09, the prediction is now for $5.75 instead of $6.07. FY10 could slip from $8.03 to $7.38.
Abramsky links the downgrade with a "worsening consumer spending environment," particularly when it comes to Macs. A September ChangeWave survey indicates that just 29 percent intend to buy a MacBook in the next 90 days, as compared to 34 percent in August; likewise, only 26 percent are now looking to buy a Mac desktop, versus August's 30 percent. This is said the be the largest decline in these figures for two-and-a-half years. Interest in electronics is in fact said to have "the weakest outlook ever seen," with 40 percent planning on spending less in the next 90 days, despite the holiday season.
Morgan Stanley's Kathryn Huberty, meanwhile, has switched Apple stock from "Overweight" to "Equal Weight," slashing her expected price target from $178 down to $115. Her FY09 EPS has dropped from $5.91 to $5.47, while FY10 figures have been moved from $8.07 to $6.92. Huberty comments that computer sales are losing ground as a whole, except for the sub-$1,000 market, where Apple does not have anything to offer. Regardless, she notes, "even in the best of scenarios, AAPL’s EPS growth will decelerate meaningfully from June quarter levels."
NO that's ANAL-ISTS
09/29, 11:12am (1 reply) reply
Idiots, people who don't have a clue about Apple's business.
They're dropping Apple's stock because they feel like it. No facts or proof to back up any of there claims. And what does the rest of the IDIOT Anal-ists do? They follow them like blind men walking off a cliff!
YOU ANAL-ISTS are all IDIOTS!!!!!!!!!!!!!!!!!
horvatic
Fresh-Faced Recruit
Joined: Apr 2002
buy
09/29, 11:15am reply
time to buy
wish I'd sold when it touched $190 recently LOL!
anyway catch it on the downswing, these anal-ists' opinions are being magnified by the stock market panic today
climacs
Fresh-Faced Recruit
Joined: Sep 2001
THANK YOU!!!
09/29, 11:34am (1 reply) reply
thanks analysts.. Just bought some more at $107.
eldarkus
Fresh-Faced Recruit
Joined: Feb 2004
Upgrade cycles...
09/29, 11:39am reply
...for me are ready to replace 1G intel macs & just waiting on the new macbook pro announcements to pony up significant hardware dollars as well as just buying a 4g nano which I am so impressed with I am ecstatic - to me the product line has never been stronger - hopefully the pc->mac paradigm shift will surprise many - everyone I know is switching or has switched...
bobolicious
Fresh-Faced Recruit
Joined: Aug 2002
Calm down.
09/29, 11:43am reply
Wow, is Apple a religion for you two? The analyst is just stating the reality of the U.S. economy at the moment--that people won't be buying shiny gadgets when they can't pay their mortgage. Also, this is a downgrade to the outlook for the stock price. If you really think this person is wrong then buy up Apple stock--this should be a great opportunity for you to make money on a bad stock projection.
Guest
Fresh-Faced Recruit
Joined: Nov 1999
of course!
09/29, 11:45am (1 reply) reply
If someone downgrades apple stock, they are idiots who are just doing something because they have a personal vendetta against Apple (probably old Beatles fans who still can't get past how Apple stole the name of the company or something).
But, horvatic, if you're going to complain about idiotic "people who don't have a clue about Apple's business." and that "They're dropping Apple's stock because they feel like it. No facts or proof to back up any of there claims. ", the least you could do is:
- show proof that they just feel like it
- show proof as to why they're wrong
as opposed to just arguing the lack of proof with a lack of proof. Because I'm sure you're not bashing 'anal-ists' (oh, so funny!) because you just feel like it.
And climacs and eldarkus are completely right (esp. if you're claims are correct). Instead of whining, you should be pushing as much money you can into the stock. There's no better way to show analysts they're wrong then to flash your wad of green in their face.
testudo
Fresh-Faced Recruit
Joined: Aug 2001
@guest
09/29, 11:53am reply
Actually I did just that. I cannot afford a lot of stock right now but I am buying. Hey, Apple is selling more computers, iPods,and iPhones than ever.
Say, if these Anal -ysts are proven wrong, will they have the good sense to fall on their swords, or at least pens.???????
Actually there is a rumor going round that since Apple buyers/sellers seem to follow these anal-yst with abandon and wild cost swings, that there is some serious stock manipulation going on here. Build Apple up with wild stories, Sell it, bring it down with stupid comparisons, buy it. At a 100% change in price, this makes for large profits.
Just a thought,
en
Eldernorm
Fresh-Faced Recruit
Joined: Sep 2007
i wonder
09/29, 12:33pm reply
if that person leaping in the imac picture is an apple stock holder taking the plunge?
testudo
Fresh-Faced Recruit
Joined: Aug 2001
Maybe...
09/29, 12:33pm reply
The august/september difference is because lots of those folks actually *bought* the iMacs they planned to buy?
boomer0127
Fresh-Faced Recruit
Joined: Jan 2004
To much cash
09/29, 12:33pm (1 reply) reply
The real problem with Apple is they have way too much of that cash stuff just laying around in those insecure financial institutions. Any one with cash is wishing they were broke like me;-) this makes me feel so much better about being leveraged to the hilt, my cash can't disappear with some greedy bank CEO.
jstephe
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Joined: Feb 2006