“Apple shares suffered their sharpest fall in eight years Monday morning on the word of two analysts — including one whose record predicting the company’s performance is mixed at best.” Phillip Elmer-Dewitt reports for Fortune.
“By 10:30 a.m ET the stock had dropped 16%, wiping out more than $18 billion in the company’s market capitalization in the space of 60 minutes. Apple closed at 105.26, down nearly 18%, its lowest level since May 2007,” Elmer-Dewitt reports.
“The broader market also fell at the opening bell, and then more sharply after the financial bailout plan failed to pass in the U.S. House of Representatives. By the end of the day the Dow Jones Industrial average had lost more than 777 points, its worst point loss in history, down nearly 7%,” Elmer-Dewitt reports.
“But even that paled next to the nosedive Apple (AAPL) took after Morgan Stanley’s Kathryn Huberty, citing slowing global consumer demand, cut her price target to $115 from $178 and her recommendation on Apple from ‘overweight’ to ‘equal-weight,’” Elmer-Dewitt reports.
Elmer-Dewitt reports, “In a survey of eight leading Apple analysts last September, Huberty was rated the ‘worst’ based on her ability to estimate the company’s quarterly sales.”
Full article here.
So-called “analysts” ought to be able to take a little analysis of their own performance – especially as it can really cost people when, for whatever reason, they’re wrong – right?
5 Day Most Commented