Apple trades below $400 for the first time since December 2011

Discussion in 'Stocks' started by S2007S, Apr 17, 2013.

  1. S2007S


    Again the same thing over and over, the stock rallies for 4-5 years, everyone thinks it can only keep going and going and going and going until one day it reaches the top and declines, as I have said many times no company stays on top forever and this is just another lesson learned about how great stocks such as apple can fall hard when you least expect it....this was a $700+ stock less than a year ago now around $400 and with earnings next week who knows where its headed, competition is the strongest its ever been for them.....when analysts start to come out and place cool $1000 price targets on stocks its time to get out, just like apple was suppose to be the first trillion dollar company well that has been forgotten after this latest decline in its stock price. If earnings next week dont show this stock could easily fall to $250-$300 a share!

    Apple Breaks Below $400 for First Time Since December 2011

    Published: Wednesday, 17 Apr 2013 | 5:08 PM ET
    By: JeeYeon Park Writer

    Apple tumbled to its lowest level in over a year, as investors continued to dump shares of the tech company amid worries over second-quarter iPad mini shipments.

    The once-darling tech giant of Wall Street shed nearly 6 percent Wednesday, briefly breaking below $400 a share for the first time since December 2011, following a report from DigiTimes that iPad mini shipments could fall 20 percent to 30 percent quarter-over-quarter, to 10 million to 12 million in the June quarter, because of "lacking demand in the market."

    "We continue to see risks to [Apple's] consensus estimates, primarily with respect to the June quarter," wrote Edward Parker of Lazard Capital Markets. "June should be the trough quarter ahead of multiple new product introductions into this summer and into fall."

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    Brian White, Managing Director & Senior Analyst for IT Hardware, Networking & Tech Supply Chain at Topeka Capital Markets says Apple's stock is going through a bottoming process. He thinks the opening up of new market opportunities will help propel Apple's stock higher.
    Adding to worries, Apple supplier Cirrus Logic plunged nearly 15 percent after the audio chipmaker estimated fourth-quarter revenue below Wall Street projections, and first-quarter revenue forecast also fell short of expectations.

    Other Apple supplier, including Qualcomm, Avago Technologies and Skyworks, also traded sharply in negative territory.

    Most recently, widely followed Apple analyst Gene Munster of Piper Jaffray cut his price target to $688 from $767 based on the belief that the company will release a lower-priced iPhone, which will cannibalize higher-priced iPhone sales.

    Munster also expects Apple's earnings to be weak, and the guidance for the June quarter is going to be worse than expected. Still, he maintained his "overweight" rating on the stock. Apple is scheduled to post quarterly results next Tuesday.

    Apple shares have vastly underperformed the broader market amid revenue concerns, plunging almost 25 percent year-to-date against the S&P 500's 9 percent rally. Apple shares have dropped a staggering 40 percent and wiped out more than $250 billion in market cap since hitting an all-time high of $705 a share in September when the iPhone 5 went on sale.

    "Clearly, it's been a rough six months for the stock," Parker wrote. "Sentiment has gone from bad to worse as the overhang from the disappointing December quarter call has been compounded by a steady stream of negative industry supply chain checks."

    Still, Parker said he continues to like Apple as a "storage" company and has a "buy" rating on the stock with a $540 price target.
  2. KMAX


    "Still, Parker said he continues to like Apple as a "storage" company and has a "buy" rating on the stock with a $540 price target."

    Yeah, right when? in five years?
  3. Glad to see some of these idiots getting wiped out.

    Some of the Apple fanboys that promoted this stock were arrogant and rude. Many of them were dumb enough to have huge portions of their net worth in this stock.
  4. Paul500


    just like everyone was buying at 700 just like everyone is selling at 400
  5. You are assuming the so called "idiots" are exiting now or are still in. At some point the fanboys were the smartest kids in town, where they exited, nobody knows but since 2009 it has been an extremely hot stock until last quarter of 2012.
  6. I think AAPL could surprise next week with earnings, but it is an extremely risky play. There's no support anywhere close by, probably 350 or so would be the next real support.
  7. I wish I had been dumb enough to put a huge portion of my net worth into Apple in 2009. People are often arrogant and rude but the fact remains that Apple, as a company and a stock, performed extraordinarily well for a long time. And, that performance, was not as it sometimes is based on purely speculative fever without any earnings underpinning the rise. In P/E terms it has not -- in recent years -- tended to be a high flyer and, except for holding on to too much cash, it's hard to question the balance sheet.

    Pretty simple story actually: They dominated the high end with their product lines, created a certain cachet in owning their gear and then when Samsung/Android became an acceptable alternative to those who needed "top of the line" status the cracks appeared and the stock broke down.

    All as it should be for a company that had their fingers on the pulse of their demographic and executed very well for a long time. Not even my dearly beloved Yankees win the pennant and series every year but having a bad season or two does not make them the Cubs. I use the Cubs rather than the Red Sox because it truly has been a tough week for Boston and even New Yorkers (maybe particulary New Yorkers) stand with them this week. But in June we will feel fine about despising the Sox again!

  8. Why would it have required being dumb to bet big on AAPL in 2009? That implies there were no logical reasons to go long the company.
  9. I think he means dumb enough to allocate an extremely large portion of his capital to one trade
    #10     Apr 21, 2013