Analyst: Apple was going down to $130 no matter what results they posted

“As expected, Apple (AAPL) had a very merry Christmas, posting the best quarter in its 32-year history, with earnings up 58% over the same quarter last year. But the good news fell on deaf ears in a market roiled by the broader meltdown,” Philip Elmer-DeWitt blogs for Fortune.

“And the company’s conservative projections for the next three months seems to have spooked investors attuned for signs of a coming recession. Apple’s shares, having closed at 155.64, down 3.5% for the day, plunged more than 12% in after-hours trading. At one point the stock hit 136.75, a four-month low,” Elmer-DeWitt reports.

“If this were any other company, the market’s reaction would have seemed bizarre… But Apple is not any stock. The market has come to expect extraordinary earnings growth, especially in the Christmas quarter. Traders instead seemed obsessed with Apple’s forward-looking guidance,” Elmer-DeWitt reports.

“Piper Jaffray analyst Gene Munster confessed that in his five years of covering Apple he’s never seen anything like the market’s reaction to these earnings. ‘I talked to one of our technical analysts before the call and he told me that the stock was going down to 130 no matter what results Apple posted,’ Munster said in a phone interview. ‘Something bigger is going on in people’s minds. There’s a feeling that stocks need to go back to their 200 day averages as the market corrects itself. This is not a bullish sign for other tech stocks going forward,'” Elmer-DeWitt reports.

Full article here.

85 Comments

  1. So what’s the vibe in the States at the moment. I have nearly 20000 aussie dollars I don’t know what to do with. Should I support Apple and invest in them? I’d like too. Do it now while it’s cheap?
    I mean unless America totally closes down and shuts up shop, I see this just as a slump. Things will eventually get better. This must have happened before, gone up up up, nows it down again. It the nature of the market.

  2. You guys really have to stop generalizing. First off, I don’t want a tax-and-spend socialist either, which is why I don’t like President increase-medicare-by-30%,-double-the-Federal-Department-of-Education,-double-military-expenditures,-and-greatly-increase-the-debt-which-will-eventually-have-to-be-paid-off-with-you-guessed-it-higher-taxes-or-genuine-lower-spending Bush and most others who currently call themselves “Conservative”.

    I personally support Ron Paul (go ahead, laugh), which by the way points out another false generalization here: that Republicans all fund special interests. But after him, I would, as much as I hate to say it, rather have any of the Democrats than any of the other “conservative” Republicans.

    Sorry for the rant.

  3. @Aussie,

    I would still consider investing in Apple considering it has “adjusted”. Guidance for the next quarter is not an indicator of bad things at Apple, just bad things here in the states. Some analysts acknowledge that we have been in a recession of sorts here for the past few months already, so this news of bleaker earnings is not just Apple. If you think Apple has it bad, wait until the effect it has on the entire tech sector. It will be a bloodbath.

    But with all cyclical things like the financial markets, things will turn around. Here in the states the Federal Reserve Bank lowered the “discount rate”, the rate the government charges banks for loans. This has an effect on all corners of the economy and generally should help the markets in general.

    Wait until Apple goes down to $135 – $140, then consider buying.

    fm

  4. People, it makes no difference who’s in the White House now. We’re all fscked.

    Within seven years, America will need that US-Mexico border fence to keep people IN. God bless our rulers (on all sides), who ruined the country for the sake of power, politics, and short-term personal gain.

    As for Apple, are they traded on any Asian exchanges? Time to see the real future.

  5. Going negative is easy and in peoples’ nature. That’s why criticism is cheap and enlightenment hard to come by. Things are never as bad as they seem– because “bad”– unless one dies– is really a matter of perception.

    Keep talking, Gloomers. In the meantime, the ones who see opportunity will continue to reap rewards. At least you can huddle together and stay warm in your collective self-righteousness.

  6. I wish houses were only $350,000, Try $700,000 an UP! Gas prices average $3.25 a gallon for regular unleaded. Were talking California here folks. If houses were $350,000 around here there would be a housing boom.

    Back to Apple and the Stupidity of the stock anal-lists not analysts. Apple has beaten everyone in the computer industry yet they penalize Apple for it EVERY TIME! STUPIDITY AT ITS BEST. Open up your eyes you stupid people, Microsoft is not the leader anymore, Apple is. You asked for growing market share, Apple has done that, IN SPADES! You wanted Apple to have consistent profits, Apple has done that, IN SPADES! Hello? The stock market is a big farce, fake, with a bunch of idiots on the floor who know nothing from what I can tell.

  7. “I am putting a sell on Apple, the company that created the iPhone,” Laura Goldman, investment advisor, LSG Capital, May 21, 2007. AAPL closed at $111.98 that day.

    MDN seems to be forgetting to add this quote recently.

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