“The brutal selloff over the past couple of days — sparked by growing worries about the stability of the global economy — has put the market into a tailspin,” Gallagher reports. “The S&P 500 has shed more than 7% of its value since Monday, and the Dow has slumped by more than 700 points — briefly dipping below the 10,000 mark for the first time in three months.”
Gallagher reports, “While the slump has not been triggered by any particular worries coming out of the tech sector, the industry has born the brunt of the selloff… Apple Inc. which has been riding high this year thanks to enthusiasm for its new iPad and — most recently — a positive surge after reporting blowout results for the March quarter, has shed 10% of its value this week.”
“The stock even dipped below the $200 mark during Thursday’s panic, though it came back quickly. But it was still below $240 by Friday afternoon — a level not seen since before its last earnings report on April 21,” Gallagher reports. “‘We believe investors can still be rewarded by buying shares into improving sales of both iPads and the iPhone into calendar year-end,’ wrote Barclays analyst Ben Reitzes in a note to clients on Friday. He added that ‘these new cycles could arguably make Apple more defensive in this environment’ than it was in the second half of 2008, when the market last endured a brutal selloff stemming from the sub-prime mortgage meltdown.”
Gallagher reports, “Reitzes kept his price target on Apple at $315. The stock is now below all but two of the broker price targets on Wall Street. Despite the selloff, Apple remains in positive territory for the year, up more than 12% since the first of January.”
“Other big tech names have fared less well, having missed out on most of the market upswing before the selloff began,” Gallagher reports. “The most notable among these is Google… The stock was already down slightly for the year before that report, and has slumped since. Google shares are now down more than 20% for the year — with Friday’s selloff putting the stock below the $500 mark for the first time in more than six months.”
Full article here.
MacDailyNews Take: Proof that karma applies even to moles.