If I had bought Apple stock back in 1985…
AlleyInsider is reporting that AAPL is down to $110 - 14% - due to stock downgrades by Morgan Stanely and RBC. Why? Because folks aren’t buying stuff - it’s “the weakest [90-day electronics spending] ever seen” - and Kathryn Huberty points out that Apple isn’t in the sub-$1,000 laptop market where all the money is. Fair enough: people are scared, they don’t buy iPods. But the sub-$1,000 laptop market is not a place for Apple to play - the profit comes from shipping huge numbers, not from all the cost savings to be had by pricing your laptops at lower than low.
As we all know, Apple my be getting into the sub-$1K next month - October 16 seems to be the secret launch date - so this minor correction is nothing to worry about. Unless, of course, you’re a Wall Street Analyst.
love the TPIR reference in the graphic :)
glad you saw that.
But why does the comment counter always show double the real number?
“But the sub-$1,000 laptop market is not a place for Apple to play.”
“this minor correction is nothing to worry about. Unless, of course, you’re a Wall Street Analyst.”
Apple has no option other than getting into sub1000s. And this is not a minor correction. America is in very deep trouble. Sad to say, History will prove you wrong, my friend.
^^^ What he said.
This is down right STOCK SLANDER! I can’t believe these guys would say this when the last quarter results were through the roof. They always have been. These dumb ANALyst THINK people aren’t buying stuff? Where is there proof that people “aren’t buying stuff” Apple’s quarterly financial results haven’t come out yet. Why are people taking these guys opinions as gold? It’s like bringing an umbrella when the weather man says it’s going to rain today, but there’s no clouds in sight. Besides, did u see how much they downgraded the stock? Not much.
Way to go everyone. Stop panicking. The sky is not falling.
Regardless what analysts say, the fundamental fact is that consumer discretionary spending is decreasing. Apple products are discretionary goods, I have an iPhone and love it - but in the coming year people will think twice before laying down the money for an iPod or iPhone. Analysts are people and people have opinions - as Charles Barkely once said - “opinions are like ____ everyone has one, and they stink”.
Mark my words, even if you don’t want to believe it, the spending that occurred for the last 10 years is gone, at least for the next 2. Company’s like Lululemon, Apple, etc. will continue to get hit hard, along with the whole market.
There are several reasons to sell but the biggest is to raise liquidity levels within the portfolio of fund managers. Most managers have a discipline that they have to abide by and with the financial sector in the tank, they’re forced to rebalance and raise liquidity. Tomorrow being the last day of the month means that within the week investors will begin to receive their statements, and they’re not going to be happy when they see the black,white,and RED. At the same time, spending has come to a screaching halt which will have a negative affect on 3rd quarter earnings. As for the sub 1k machines, i’m not buying into that model saving anyone. The consumer that would normally buy that machine is too busy trying to save what they have. Apple will be fine and is a buy. The next phase will be consolidation and then we will build a foundation from there.
What surprises me about yesterday’s move in aapl is the credence seller’s placed in Katy Huberty’s analysis. Andy Zaky over at his Bullish Cross blog (http://bullcross.blogspot.com/) pointed out last week just how bad of an analyst she is on Apple. Zaky himself and Gene Munster at Piper Jaffray seem to get it pretty right.
Disclosure: No connection to Zaky whatsoever, just a long time Apple investor. I did back up the truck on Jan ‘10 110 calls yesterday though.
Does this Kathy work for Microsoft!!!!!