Apple has worst stock day since 08(due to iphone demand)

[Slystallion]

Shares of former tech darling Apple (AAPL) tumbled 12% on Thursday in their largest selloff since the 2008 financial crisis as Wall Street worries the iPhone maker’s incredible growth pace may be over.
The steep selloff leaves Apple at fresh 11-month lows and knocked the consumer-electronics giant off its perch as the world's most valuable company by market capitalization, allowing ExxonMobil (XOM) to retake the top spot.
The bad day for Apple comes after the company disappointed shareholders on Wednesday evening with gaudy quarterly results that failed to meet Wall Street’s lofty expectations.
In response, a number of analysts downgraded their ratings on Apple, including Jefferies (JEF) and Scotia, and Morgan Stanley (MS) removed the stock from its best ideas list.
The “slowdown in iPhone sales is real and material,” Jefferies analyst Peter Misek wrote in a research note on Thursday. “While management was somewhat evasive on the call, it appears that demand in the second half of the quarter and into CQ1 was much weaker than management or we expected.”
Apple, which plunged 11% out of the gate on Thursday, hasn’t closed with a loss greater than 10% since September 29, 2008 when it plunged 17.9% after the U.S. House of Representatives initially rejected the $700 billion TARP bailout.
The steep descent since hitting all-time highs in September has evaporated an incredible $226 billion in market value for Apple, leaving it at about $424 billion, compared with over $428 billion for Exxon.
Admitting it was wrong on Apple’s growth slowdown, Jefferies downgraded the iPad and Mac maker to “hold” from “buy” and slashed its price target by a whopping $300 to $500.
In addition to the iPhone jitters, Jefferies cited forecasts for margins to continue to contract and disappointment with Apple’s guidance for the current quarter.
After at first running away with the smartphone revolution, Apple has suddenly run into fierce competition, especially from South Korean electronics heavyweight Samsung and its Galaxy line of devices.
“Moving away from Samsung, with its huge scale, high quality and excellent execution, is proving difficult and expensive,” Misek wrote, forecasting gross margins staying below 39% and trending lower.
Misek also noted that Apple, long known for its overly conservative guidance, is no longer beating expectations by the same magnitude as in the past.
Therefore, Apple’s forecast for sales of $41 billion to $43 billion is meant to “more accurately reflect” the company’s “likely results,” Misek said. “We believe this signifies management's recognition that the company is unlikely to exceed expectations in the future,” he added.
Besides Jefferies, analysts at a slew of brokerages axed their price targets on Apple, including Stifel to $650, UBS (UBS) and Credit Suisse (CS) to $600 and Nomura to $490.
Apple plummeted 12.35% to $450.50 on enormous volume Thursday afternoon, falling to its lowest level since February 2012.
The selloff weighed heavily on the Nasdaq Composite, where Apple has a hefty 9.85% weighting.



Read more: Apple Suffers Worst Day Since '08 TARP Rejection | Fox Business

 

[Evil genius Jay]

 

[jdubnyce]

 

[Camammal]

 

[Ed MOTHERFUCKING G]

They are always 1 or 2 bad products away from epic collapse

never forget that

 

[Slystallion]

Its simply from the iphone not beating earnings expectations like they used too...apple as a company wont collapse anytime soon but the market doesnt forecast the phone to be a world beater like it used to be galaxy is taking in marketshare and iphone doesnt seem as cutting edge as it used to be

 

[illadope]

This is a good thing, for apple heads, window heads, & android heads.

 

[Slystallion]

This is a good thing, for apple heads, window heads, & android heads.

it means apple has to really blow the door with the next iphone. I mean apple has 60 billion in liquid cash that they are holding. Their stockholders aren't happy about the loss in value so it might spur them to start using some of that liquid to increase the shareholders value and really try to be ahead of the market like they used to be...

there was a time when nothing could really compete with the iphone it was the best phone on the market bar none...now its not clear cut and cases can be made that you can get better products elsewhere.

Apples next move? 5 inch screen? An apple Phablet? would that eat iphone and ipad sales?

Apple could again create a market for phablets...even though it exists their hype machine behind it would create a new product that they an gain number 1 marketshare in ...i say an apple phablet is probably the best move they can make

 

[duncanthetall]

Maybe they'll stop fukking around

 

[illadope]

I dont care either way what happens. As long as they stay a closed format, Ill make money off of apple.

 

[ExodusNirvana]

Told cats that some dark days would be coming when Jobs passed...better adapt

 

[HookersandIceCream]

It's funny you broke clowns post articles don't even don't even tell the whole story
Apple had higher profit this quarter than Google entire revenue!

 

[Slystallion]

It's funny you broke clowns post articles don't even don't even tell the whole story
Apple had higher profit this quarter than Google had all year

Googles stock Is over 700...so the shareholders there are getting a much higher return on equity for probably a multitude of other factors besides profitability

Id still say its a good bet to bet on Apple now but these prices are based on a number of ratios that factor debts assets liquidity and profits ...id say apple is too liquid and not putting it to maximize shareholder value but apple as a company though for the long term is in a good spot...profit wise and they have a mechanisms in place for that train to be pretty steady

 

[calh45]

shyt like this is why I'm always hesitant to invest in stocks.

They've had something like 13 billion in profit this past quarter, which to me means SCREAMS healthy company, but have lost worth because they have competition or didn't growth enough. Companies plateau, it's what happens, it's a ridiculous notion that this is bad for Apple. It's bad for their investors portfolio in that they won't make as much if they sale their damn stock, but the company itself is fine.

 

[newarkhiphop]