Apple drops below $100 as Pacific Crest Securities advises selling shares now

“A Wall Street analyst is telling investors to sell shares of Apple Inc. one week ahead of the company’s expected unveiling of its latest iPhone, saying a downgrade is likely unless the company massively exceeds expectations at the event,” Steven Russolillo reports for The Wall Street Journal.

“‘We recommend taking profits in Apple,’ said Andy Hargreaves, an analyst at Pacific Crest Securities with an outperform rating and $100 price target on Apple. ‘Unless next week’s event details massive incremental profit opportunities, we are likely to downgrade Apple’s rating,'” Russolillo reports. “Shares slumped as much as 3.3% on Tuesday and fell below $100 for the first time since Aug. 20.”

“Still, Mr. Hargreaves caveats himself by saying investors should still hold some Apple shares through next week’s event,” Russolillo reports. “In conjunction with new iPhones, Apple is expected to show a wearable device that many have been calling an iWatch. It could also launch a new payment partnership, according to Mr. Hargreaves.”

Read more in the full article here.

37 Comments

  1. Today is perfect storm of bad news
    – iCloud debacle (no matter how the blame is shared)
    – Samsung Note announcement
    – Hargreaves downgrade
    – long fast run up to new heights

    This will kick out a lot of flakey shareholders who would have sold anyway sometime soon.

    Now presents a good buying opportunity.

        1. The ‘unpacking’ was touted in what I had read to be featuring the Galaxy Note 4. I personally didn’t know they’d also be showing off the Galaxy Edge, their 3D virtual gear (which integrates the Note 4) and the prototype new watch. Yes, the Edge is new, along side the other gear.

  2. “‘We recommend taking profits in Apple,’ said Andy Hargreaves, an analyst at Pacific Crest Securities with an outperform rating and $100 price target on Apple. ‘Unless next week’s event details massive incremental profit opportunities, we are likely to downgrade Apple’s rating,’” Russolillo reports.

    This makes no logical sense.
    He says the rating is “outperform”, i.e., it’s better to have your money in AAPL than spread across the overall market as AAPL is expected to outperform the market.

    Then he gives a projected value of $100, which is ore 3% negative with regard to yesterday’s close.

    How is that an “outperform”? Is the overall market expected to drop by well over than 3% over the next few days?

    Then he goes on to say that unless Apple unveils items that give “massive” additional profits his firm is going to downgrade AAPL, i.e., change it from “outperform”. Making a ton of money every year and breaking sales, revenue, and profit figures virtually every quarter while the vast majority of companies listed in the market is not the essence of “outperform”?

    So if Apple just comes out with a pair of new phones that sell out as usual and Apple has, as usual, a better fourth calendar quarter than last year, his firm is going to downgrade AAPL?

    People like this should be publicly humiliated for the idiots and double talkers they are. I wish I had the funds to take out a full page ad in every major financial rag and the opening/home page in every financial web site just to explain how self contradictory and idiotic the vast majority of the analyst statements are!

    1. Surely someone must have a damning list of egregious analyst errors accumulated to clearly show that Anal-cysts “know nahthink, NAHTHINK!”

      William Goldman’s quote about the movie studios probably applies to analysts too: ““Nobody knows anything…… Not one person in the entire motion picture field knows for a certainty what’s going to work. Every time out it’s a guess and, if you’re lucky, an educated one.”

  3. 😡 So annoying that one article causes the stock to collapse. And the only reason is there own FUD! No facts, no real knowledge about anything Apple is going to announce next week. Second guessing consumers who are all waiting to buy Apple products.

    1. It was my impression that the recent rise in the stock were for the same reasons of “No facts, no real knowledge about anything Apple is going to announce next week. Second guessing consumers who are all waiting to buy Apple products.”

  4. After the crap that Samsung just revealed the stock should be $10 higher. And IMO celebrities endorsing half-baked products = career ending. It it will be like Lebron James endorsing Samshit; he was kicked out of Miami because of SUCK.

  5. “Unless next week’s event details massive incremental profit opportunities”

    It’s always nice to give yourself an out. That way no mater what happens, you can count it as a win toward your percentage of correct predictions.

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