Apple Inc. today’s biggest loser in the Nasdaq-100

“Apple Inc. was the biggest loser in the Nasdaq-100 on Wednesday, falling 2% in the wake of a downbeat note from an analyst. The iPhone maker is also requesting a new trial in its patent suit against Samsung Electronics Co., according to Bloomberg,” Sue Chang and Saumya Vaishampayan report for MarketWatch.

“Apple shares fell 2%, extending losses for a second day. ‘We are reducing our large format iPad unit estimates going forward, which, along with modest growth expectations for iPhone, prevents a more positive view of AAPL,’ said Andy Hargreaves, an analyst at Pacific Crest Securities, in a report,” Chang and Vaishampayan report. “He trimmed his fiscal second-quarter iPad estimate to 16.5 million units from 17 million. As a result, he cut his second-quarter revenue estimate to $41.1 billion from $41.8 billion and earnings-per-share outlook to $9.60 from $9.89.”

Chang and Vaishampayan report, “Separately, Bloomberg reported that Apple is seeking a new trial on 14 Samsung products after a U.S. judge reduced the $1.05 billion in damages awarded by a jury. The move is aimed at forestalling an appeal by Samsung.”

Read more in the full article here.

MacDailyNews Take: Andy Hargreaves couldn’t analyze his way out of a wet paper bag. He makes Laura Goldman look prescient.

Related articles:
AAPL: Pacific Crest Securities blew it – January 17, 2013
Pacific Crest: Apple’s iPhone business is going to be dead in the water; stock rangebound $440-$550 for next 12 months – January 16, 2013


  1. Keep this going. Down. Soon, very soon, Apple Inc. board of directors will hear from the owners of this company that it needs a new CEO.

    Nothing new to excite consumers.
    Nothing to indicate a vision for the future.
    Huge market for serious computers being ignored.
    Every time the CEO speaks, AAPL falls some more.
    Every time the CEO appears in public, AAPL falls some more.
    Wall Street has no faith in the CEO’s leadership ability.
    Responses to competition range from none to tentative.
    Free shipping for a few phones is laughable.
    The company has stalled and the engine is about to die.

    Apple needs new leadership. Find us some beginning with an exciting visionary in the mold of the company’s founder.

    This is not complicated.

    1. We don’t need your disingenuous Chicken Licken take ppeterson. Give it a rest. You’ll be eating a big serving of crow soon enough, what’s your hurry? Kudos though to knowing what goes on behind the walls in Cupertino the rest of us are not privy to. How DO you do it?

      1. Don’t think ppeterson is being disingenuous… just a very frustrated shareholder like a lot of us.

        We shouldn’t give a free pass to management considering what has transpired over the last few months. There have been missteps and to ignore them may be detrimental to your bank roll.

        1. As a long-term shareholder, I feel the same way as that pete. I am not privy to what is going on at Apple, and I don’t expect to be. I merely feel that Apple has enough money to accomplish wonders and I fail to see why Apple’s value has become so weak. Sure it may be Wall Street pulling some dastardly scheme to undermine Apple, but why is Apple such a target for a market that should be cheering Apple’s business strength as an American company. I didn’t realize patriotism has gone away for good.

          I look at Apple and I see immense possibilities in so many areas. The way Apple’s share price is going it’s like Apple isn’t even trying. When a company has that much cash, telling shareholders to have patience just doesn’t make any sense when you have companies like Netflix rolling in easy money. Take a look at Apple’s latest server farms. Poor Netflix has to rely on Amazon just to do streaming. Apple could probably burn both of those companies if it started subscription content streaming services.

          I realize Apple’s share price just can’t keep going up but I still think a near 40% loss is more than enough. I don’t care if I’m called disingenuous, but I’ve been buying Apple products since the first Mac 128, which I upgrade to a Mac Plus and I still have it to show. I can’t help, it but $140 billion just sitting around gathering dust while the share price and P/E go south is just too much to ignore. I will continue to buy Apple products and I will continue to do so in the foreseeable future, but even more than frustrated, I just don’t get how the market continues to devalue Apple despite Apple changing the computing and smartphone industry over the past five years.

          Sure, a 2% drop in a day doesn’t amount to much, but considering the stock market is at near all-time highs and Apple isn’t even able to hold it’s 50 day average, it’s just plain annoying. Apple has enough cash to start at least three other small corporations that are currently kicking Apple’s ass in terms of share price gains.

          It just makes as though Apple’s executives have no imagination at all to add services for Apple users and make consumers just beg to buy Apple products. When a company with Apple’s power can’t stop the doomsayers from jumping all over Apple, I just don’t get it. Apple should be in the driver’s seat, not being towed along in a freaking U-Haul trailer.

          This quarter is going to be no better for Apple shareholders, except in terms of dividends which has become my only form of consolation. But meanwhile, I’d like to see Apple just pound the crap out of competitors and leave those hedge funds no alternative ground to run to. Apple should not be sucking crap from Google. I don’t care how many smartphones run Android. It doesn’t amount to a hill of beans that there’s some free OS running on a disjointed effort of smart devices. How investors could believe Android is the future of smartphones is about as foolish as them thinking Windows netbooks were the future of computing. With the amount of money Apple has, they should easily, easily turn such ideas aside without resorting to building low-cost products. Just start offering Apple device users low-cost media content the same as Amazon and Google are doing. What is so hard for Apple to manage that much?

          I’m only saying that with the current product lull at Apple, it just APPEARS that NOTHING is being done. So why can’t I be anxious with the doomsayers yelling all the time? A rapidly shrinking P/E certainly doesn’t help me think Apple has much of a future, regardless of how I feel otherwise. Apple is being valued on nearly impossible qualifications and how much money Apple is making is just an afterthought to Wall Street. Wall Street is sure Apple is a dead company and it’s very hard to tell they aren’t telling the truth. In my head I just know that no company can be dead while sitting $140 billion and I’ll just keep telling myself so even if I feel it’s necessary to complain from time to time.

          1. I feel your pain laughing. Hopefully we are at an inflection point in the downtrend. But I’m keeping a close eye on how management performs and reacts to the challenges facing the company in the next few quarters.

            1. We are at an inflexion point. But we don’t know in which direction it will go.

              Apple’s presentation in june will be the time you will know what to do. With all the cash Apple owns they can come own with something blazing.

              If they don’t… Well… You could still consider AAPL as a very long term investment.

          2. Beginning in September two brokerages sold what amounts to 10% of outstanding AAPL stock in a sustained effort to drive the price down over a 3 month period. Day after day you could see a new low with a spike in volume every 15 minutes for the first two hours of the day. It was pure manipulation.

            Combine that with a concerted public relations campaign by Samsung and Google using the likes of Bloomberg, CNBC, and Reuters and it’s no wonder AAPL sentiment is negative. Now even the Chinese government gets into the act. How much influence do the gangsters at Samsung have with the communist Chinese government?

            Apple’s results have not supported this 40% downturn. There is no reality behind it. It’s all speculation by whores like Hargeaves and the congenital idiots at CNBC. Could it be that people like PPeterson are in the employ of Samsung to whip up sentiment to replace an Apple CEO who refuses to make peace with Samsung? It is entirely consistent with the business practices and warped sense of self-importance of the Korean/Chinese business world. Bluster and puffery are their stock in trade. Pretend that you are legal, ethical, and innovative even if everyone knows better.

            1. You really think it is that simple, on a 6 month period, to drive 40% down the prices for the most profitable company in the US?

              It IS possible to manipulate stocks (on a very short period) or manipulate long term prices on “paper values” (EFTs are a perfect example). But it is NOT possible to make a manipulation that lasts half a year on a company that produces something.

              If the price drop in september was manipulation it would have regained its “normal” level in a few days (Or weeks in the worst case)

              May I kindly advise you to read this article?


              There’s a lot in there to learn.

            2. Might I kindly advise you to piss off?

              No, it’s not quite that simple. There was the added impetus of tax selling before the capital gains increase, among other factors. I sketched a bare bones idea of what is going on. I don’t feel like writing a long, nuanced analysis of all the factors involved. The point is that for whatever reason a group of brokerages led by Fidelity put a systematic sell program in place over the course of several months, driving the price down incrementally each day while they unwound their positions. Others jumped on the bandwagon for various reasons.

              And I suppose you expect me to believe that Samsung and Google don’t deliberately manipulate the news concerning their largest competitor? Now who’s being delusional, chump?

            3. I find it always funny when guys like you show their virtual muscles well hidden behind their screen.

              Could it be that you compensate what happens to you in real life?

              It would be nice that you try to discuss here the same way you would do it with a stranger in the street.

              So… Now about a few facts… You can think that Samsung has the control of a country like China (Insane) and that the whole world is in a holy war against Apple but hey… In real world it doesn’t work like this.

              Let’s imagine that Samsung wants to manipulate AAPL Stocks… What can they do. Let’s make it simple:

              1) They control enough stocks of AAPL (In a way or another) to sell them at a very low price and drive the stocks in the ground. This is pure nonsense. Why that??? Simply because in the business world people like you don’t exist… They want profit. They are not on a kind of religious war. This would be extremely expensive and wouldn’t do any good to Samsung. If they had enough actions to dump the stocks at the level they are now they would simply control Apple. Add to this that if the prices fall under the perceived value of a company, others will buy the stocks and stop the drop.

              2) They could invest a pile of cash to artificially raise the value of the stock and then very quickly sell the stocks again before people realize what’s happening. That would be technically possible but that didn’t happen. Have you seen a massive 300$ up peak that survived a few hours??? I didn’t…

              The value we have now is the result of a slow drop over 6 months. Not a brutal drop over a few days. A manipulation of this size would cost more than simply buying Apple.

              So much for me being “delusional”. Maybe amused… You’re so pathetic that it has reached a comical level.

    2. “Find us some…” Pee pee boy???

      You ain’t no us and we don’t need no find pee pee. Now why would a troll be such a teenie weenie pee pee? Shed some of you light on us peeeeee peeeeee.

    3. How does ppeterson always get to post his bullshit so quickly?

      He could be unemployed. He could be a day trader that always shorts AAPL.

      I’m kind of leaning toward the possibility that MDN creates these shit-disturbing rants, just to stir things up, when hits are slow.

      1. PPeterson is quick to post on most negative topics because he’s paid to post. It’s his job. His masters at Samsung or Google want Cook ousted as CEO so they can get someone more tractable installed. He’s a paid shill. I say it’s Google who’s his employer, because unlike the Samsung paid shills, he at least speaks English reasonably well.

    4. Hello ppeterson

      You opinion is maybe a bit extreme and has raised some concerns with some other “posters” 😉 but I must agree with most of what you say.

      Apple’s strength is the >perceived< quality and innovation of their product. (I stress the perceived).

      Jobs contributed a lot to this perception (Without forgetting the qualities of iOS compared to Android when it came out). Apple must find a new way to get this positive bias back.

      There are 2 ways for that:

      1) Find a charismatich leader. This wouldn't change anything about real qualities (or defaults) of iOS, but the perception of Apple by the crowds would change.

      2) Create something blazing that leaves everyone else behind. This will be hard as the competition now is on pair (or even better on some aspects).

        1. Huh??? Me?

          Could you please point out where I am wrong?

          For your info… I don’t even own a Samsung device. I’m just not biased toward anyone and this includes Apple.

  2. Andy Hargreaves couldn’t analyze his way out of a wet paper bag.

    This is exactly the problem. Apple stock rises and falls according to the pronouncements of abject morons! How can such a riduculous “system” continue to survive?!

  3. I am an Apple investor, not an Apple trader. I believe the longterm strategy Apple is following, that is, build great products people want and use, will result in the company doing just fine. The stock will eventually follow. Tim Cook is guiding for the longer term, not jumping through hoops to look good each quarter, and that is fine with me.

    1. Well said, I’m willing to give Tim Cook the time it takes to be sure. I’ve always been of the impression that there would be a backlash against Apple after Jobs died.

      It’s now up to the team to see if they really have it in their DNA to deliver. That is not going to happen overnight either, patience is key.

  4. If next quarter earnings ‘disappoint’ expect to see a hugh drop in share price. Upping the divi is not gonna help much either.
    When that happens (price drop), i suggest Apple not bother with a dividend but rather start a Hugh share buy back and make sure it doesn’t find it’s way back into the market like Cisco’s shares do. You cannot control the market and share price when you have a Hugh float out there. Ask Microsoft.

    1. I agree with the idea that Apple should be doing huge share buy backs. What stands in the way of that? If I had that kind of money, I’d be investing an awful lot of it in AAPL.

  5. The thing is… with a much lighter form factor, Apple will really be putting its foot on the throat of the competition with the next iPad. Remember the iPod Mini and the iPod Nano? Apple is much better at this kind of iterative design innovation than anyone else. They will be able to run away with the high end of the tablet market this year and next.

    A new iPad that is both thinner and lighter than an iPad 2, has a smaller form factor and even better build quality will stand far above the competition. Thinness, portability, build quality will be the themes for the big iPads this year.

  6. I don’t think AAPL shares will move up a lot until june. After that… ???

    Investors are scared now and wait for the presentation of the 5S end of june. They will certainly also keep an eye on how the S4 performs.

    There are not many possible scenarios:

    1) Apple comes with something great and the S4 + other Android phones havn’t performed well. In this case AAPL share will make a tremendious jump.

    2) Apple comes with something as boring as the iPhone5 while the S4 sells well. That would be really bad for Apple’s stocks.

    3) It will be a mixed bag as well for Apple and Samsung which, in the end, is the most probable outcome. In this case AAPL should slightly climb but it will take time again to reach the 700$ bar

    The big problem Apple faces actually is that Jobs was an iconic figure. This helped a lot Apple during the last 5~6 years. Now that he is dead Apple isn’t disadvantaged toward other competitors but it lost an advantage. People no longer “assume” Apple is creative and innovative. They want to see this innovation and creativity.

    If Apple fails to provide this in june it will hurt.

    If I were you I would wait until Apples new product are here and then, do what you want… In the worst case you miss the very beginning of the “up curve” and in the best case you avoid to loose your economies. Is it really worth the risk?

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