Needham downgrades Apple Computer in valuation call

“Needham & Co. on Friday downgraded shares of Apple Computer to ‘hold’ from ‘buy’ in a valuation call. ‘With all of the possible contributors to Apple’s share price factored in — the iPod, a possible flash-based iPod and the widely discussed halo effect — our valuation model produces a fair price of $70 per share,’ analyst Charles Wolf told clients. With the stock now trading close to that level, Wolf believes most of the upside is now captured in the share price. Apple shares closed down $2.58, or 3.8 percent, at $65.21 on Thursday,” Susan Lerner reports for CBS MarketWatch.

Apple is currently trading at $62.70, down $2.51 or 3.85% in NASDAQ trading.

MacDailyNews Take: This is “normal.” Apple may have been going too fast, too high for the market’s taste lately. Everything corrects eventually. Investors will be watching Apple closely to see when the time is ripe to buy again.

Related MacDailyNews articles:
Smith Barney raises estimates while lowering rating on Apple from ‘buy’ to ‘hold’ – December 02, 2004
Investors picking some Apple profits near year end – December 02, 2004

10 Comments

  1. The fundamentals are good and Apple will continue to rise, especially in January when Christmas sales figures and MWSF announcements come out. Right now many are cashing in on the gains that they have made in Apple stock- especially institutional investors and Mutual Funds.
    Apple’s stock will probably drift sideways or slightly downward through the holidays and then start climbing in early to mid-January. For those who missed the first ride, the holiday season doldrums will be an opportunity to get in on the next rise in Apple stock. Apple’s high P/E ratio will be corrected when the CY4Q figure come in.

  2. Where were you arseholes last week????

    I waited too long and then bought within $1 of the highest price, after watching it climb and climb (bit late getting a broker see)

    And now this? Thanks a bucket.

    NOT.

  3. crap, iPodder – I missed on this one, and it was a good one. I’ve done the same thing on a few peaks along the way. It’s always a little risky when you do, but this one was a no brainer, and I just missed it. Congrats on making the extra cash!

  4. Thanks Smithy.

    It’s my own fault for not being an old-fashioned man and going behind my wife’s back and setting up a trading account with her social security and bank details (coz we’re not Americans, kinda just visiting for now, and she has a job and I don’t, she has the accounts and social etc)

    I wanted to buy at $38 or so, and asked her to help me in finding a trading account. She took her time. We’ve had a terrible row over it this week, coz it’s not the first time I wanted to buy/sell shares at hot prices!

    Oooh, I just want to be old fashioned again and smack her around a bit! (I’m kidding guys, come on, this is tasteless humor.)

    Ironically, it is not unusual for me to be ripped off on something Apple related. As a not-very-rich person 10 years ago, I often bought their computers just before a new release (coz the old ones were cheap). After a few purchases, I stopped doing this when I figured that the newer models were better or almost as cheap or better equipped for the money than the newer ones. Since then, I always buy soon after new releases to maximise the money spent.

    ps my theory is the price WILL hit $100, which is why I bought at all. It’s just that I would have liked the extra few hundred in my pocket!!

  5. ripped off
    I’m sure you’ve heard this: You are only as stupid as you allow yourself to think you are. Start thinking that you are smart and you’ll begin to do smart things – the law goes like this” What you think…you are”
    BTW- it’ll reach $100 or will split before too long

  6. Dont worry GrassHopper…

    Your diligence and patience will be rewarded….

    Good things will come to those who wait !!

    In other words … Ripped Off….

    Keep the faith !!

  7. Thanks to all of you for your support.

    Anyway, I guess I can’t be too stupid – even Steve has sold off his shares/options at what later turn out to be “bad” times – and he’s done that more than once!

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