“After Apple shares plunged by nearly 4% on Thursday, due to shareholder panic in reaction to NPD’s January US retail results, an analyst brief has urged investors ‘to exploit what we believe is the market’s overreaction and buy the stock,'” Prince McLean reports for AppleInsider.
“NPD data for January was actually released on Tuesday, but wasn’t widely reported until Thursday. The firm’s numbers, based on US retail store surveys, indicated a 6% drop in quarterly Mac sales year over year and a 14% drop in iPod sales. The reason for the two day delay in the panic on Apple’s stock price relates to several dramatically framed reports filed on Thursday,” McLean reports.
“The stories all reported Apple’s drop in growth in comparison with the company’s performance in 2007, as opposed to highlighting Apple’s actual performance relative to other companies in the same economic climate,” McLean reports. “Additionally, many of the articles focused on percentages of growth rather than actual sales numbers or revenue, contrasting proportional changes in growth while ignoring that Apple’s unit sales are actually higher now than they were in 2007 when the company was achieving huge percentages of growth.”
McLean reports, “Analysts Charlie Wolf and Jim Lewellis of Needham & Company filed the brief that called the selloff an ‘overreaction,’ noting that NPD’s figures only reflect a single month of sales, only look at retail sales, and only reflect US sales; international sales make up 45% of Apple’s worldwide figures. “
Read more in the full article here.
