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.
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