Apple Inc. (AAPL) is now trading at $444.73, which is yet another drop in price. Since the stock hit its high water mark, the stock has taken a downturn. This slide has gotten worse in the wake of earnings reports that missed estimates on iPhone sales, and it could get even darker.
Jeff Gundlach predicted that Apple would be worth only $432 per share, and he may be right in that assumption. His prediction contradicted many other analysts who set price targets anywhere from $750 to $1000 per share on the tech giant. Gene Munster of Piper Jaffrays had a target of $875 for the Cupertino company, but it appears that this could be a pipe dream in light of recent events.
Those who bought Apple shares when the company began its rapid climb to the top of the world’s most valuable companies list are now feeling the pain of starvation cramps as the company appears to be not only languishing but bleeding like a cut artery. The company’s stock has been shedding value like Jenny Craig sheds weight, and the pain doesn’t appear to be over yet.
According to some investors, Apple will have to regain its foothold in the smartphone market before it will regain their confidence. This could prove to be tough with Samsung Electronics Co. Ltd. (BC94) hammering out high sales numbers of its Galaxy flagship line. There are also the myriad companies who produce cheap smartphones powered by Google Inc. (GOOG)’s Android OS, which is Apple’s arch rival for smartphone market domination.
Even with the negative response in the market, Apple’s CEO remained upbeat, citing that the numbers Apple reported in regards to iPhone 5 sales last quarter were record breaking and no tech company had ever had numbers like them. We will have to wait and see if his optimism carries over into the general sentiment of the market.