Apple shares respond well to downgrades and lowered estimates

“Apple got hit with a downgrade from Bank of America Merrill Lynch this morning along with Global Equities cutting numbers based on an upcoming disastrous China economy (projecting GDP to decline 2%),” Chuck Jones writes for Forbes. “While it may be a dead cat bounce Apple’s shares are up about $2 or 1.7% vs. the S&P 500 increasing 0.3% and the NASDAQ up 0.8%.”

“For now the recent weakness in the shares from a technical perspective seems to be on hold,” Jones writes. “Volume in Apple’s shares is also running stronger than average but not as much as yesterday’s 123 million shares. As of 12:30 ET Apple had seen about 65 million shares change hands vs. an average for the whole day of 46 million.”

“Bank of America’s Merrill Lynch Apple analyst, Wamsi Mohan, downgraded Apple from Buy to Neutral and dropped his price target from $142 to $130,” Jones writes. “Trip Chowdhry at Global Equities Research cut his Apple estimates based on China’s GDP declining to a minus 2% rate from the current 5% to 7% growth, which is similar to the US GDP decline from 2008 to 2009 during the Great Recession.”

Read more in the full article here.

MacDailyNews Take: Has the bleeding stopped?

Bank of America downgrades Apple – August 5, 2015
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Merrill Lynch cuts Apple rating; Jefferies, Global Equities foresee impending ‘disaster’ – August 5, 2015
‘The Curse of the Dow’ bites Apple – August 4, 2015
Apple enters correction territory: More carnage to come? – August 4, 2015
Analysts: This is the catalyst to push Apple higher – August 4, 2015
Why Apple’s next-gen iPhone 6s/Plus will generate 20% growth – August 4, 2015
Why there won’t be an iPhone 6s/Plus bump – August 4, 2015
Apple stock implosion shreds $113.4 billion and counting – August 4, 2015
About all of those reports that Apple is in dire straits – August 4, 2015
Continued Apple swoon could crush this market – August 4, 2015
Apple replacing AT&T causes Dow Jones Industrial Average to suffer – August 4, 2015
Apple stock now officially in correction territory as it crosses below key technical level – August 3, 2015
Nasdaq retreats amid tech selloff after Apple’s record results – July 22, 2015
Apple earnings: Good is never good enough – July 22, 2015
Cowen downgrades Apple on record quarterly earnings results – July 22, 2015
For Apple, more success raises more questions – July 22, 2015
Sorry, haters: Tim Cook confirms Apple Watch sales are much better than you think – July 22, 2015
Here’s how many Apple Watch units Apple sold – July 22, 2015
Drudge screams: ‘APPLE FUTURE QUESTIONED’ – July 21, 2015
Apple poised for $50 billion valuation loss after posting ‘disappointing’ record earnings – July 21, 2015
Apple shares plunge after ‘disappointing’ record third quarter results – July 21, 2015
MacDailyNews presents live notes from Apple’s Q315 Conference Call – July 21, 2015
Apple pulverizes the Street with record third quarter results – July 21, 2015


    1. How predictable is this! We saw exactly the same thing in 2012 – based entirely on rumour and mis-analysis. Even the chart is the same then and now. The only good thing is that the magnitude of the swings is much smaller and compressed – what played out over 12 months then took 7 months now. AAPL’s financial performance has always confounded and exposed the rumourists and manipulators, and so it will be again this time. Yawn.

      1. But this sort of crap shouldn’t be happening. Apple is like that 98 lb. weakling in comic books that was always getting sand kicked in his face. Apple should already be Charles Atlas by now 100X over and it’s still getting sand kicked in its face. It’s way too easy for Wall Street and the news media to toy with Apple shareholders. There should be a lot easier companies around to strip the meat off of. One would think that Microsoft had a better quarter than Apple from what’s transpiring over the past seven months. Microsoft isn’t even breaking a sweat to hold onto its investors. It’s like Apple’s being run by a bunch of weenies, albeit smart weenies.

    2. If you knew this, why aren’t you buying AAPL right now? People like you annoy me greatly. Buy when the price is low and sell when the price is high. What is so confusing about that? Quit Crabbing and actually by buy AAPL.

  1. Apple bought millions of shares cheap today. As MDN so well explains concerning FUD, dump, buy, rinse and repeat, or something akin to that. The WS guys are now safely tucked away in the Hampton’s with enough cash to pay for the vacations at the beach.

  2. All this analyst drivel is aimed at “traders” not “investors”. The number of investors on Wall Street is so few as to be virtually invisible in comparison to traders. if you are an investor, Apple fundamentals look great and you are happy to hold and to buy on this dip. If you are a trader, have fun fleecing the other traders who react to the FUD by selling on the dip, but good luck when you end up reacting wrong to the FUD.

  3. The stock will recover by Sept. 15, drop again in late October, move up, through December to a high around January 10, drop slightly and then reach a high in May 2016, starting it’s annual drop to August 15 etc. etc. been there done that time and time again.

  4. Gotta love the upgrades after AAPL breaks previous predictions and the downgrades after AAPL drops $20 per share. Analysts are almost universally reactionary – they tell you why you should have done something last week. If they were any good at predicting the future of individual stocks or the market as a whole, then they would be wealthier than Warren Buffett. Instead, they are pandering for $.

  5. Who the F is Wamsi Mohan? Not a name I would ever trust. And Trip Chowdhry? Geez. I say waterboard them to determine who is paying them but cut their toes off first to impart the seriousness of the situation.

  6. The market seems way overheated. The underlying economic realities just don’t support such high valuations. Ultimately, if there is a market correction it will be significantly bigger than the current mini-correction.

  7. It would appear that Apple is keeping the American economy afloat during this Second Recession under the current political regime.

    Thank you Apple, for all you do.

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