Apple heads to 7-month low as more analysts cut estimates

“Apple Inc. fell on Friday, with shares on course to close at their lowest level since April, as more analysts joined the chorus of bears and skeptics warning about the prospects for iPhone sales,” Ryan Vlastelica reports for Bloomberg. “The stock dropped as much as 2.9 percent, and shares are on track for their 10th negative week of the past 11. At current levels, Apple is down more than 28 percent from an October record, a collapse that cost the company its title as the largest stock by market capitalization.”

“DA Davidson cut its price target by $10 to $280 on Friday, warning that unit sales in the near term were probably lower than it had initially expected,” Vlastelica reports. “On Thursday, Piper Jaffray cut its Apple target to $222 from $250 and lowered its iPhone unit sales estimates for both 2019 and 2020, warning of weaker international demand.”

“Currently, the average analyst price target on Apple is a little under $221, or 32 percent above current share-price levels,” Vlastelica reports. “However, the target has dropped by about 7 percent from a recent peak above $237 at the end of October, according to Bloomberg data.”

Read more in the full article here.

MacDailyNews Take: Imagine if you had a huge multi-billion dollar program dedicated to buying back as much stock as you could. Imagine further if you thought that maybe, just maybe, pulling unit sales figures might have a deleterious effect on the very prices you’d be paying for your buybacks? Of course, Apple doesn’t think like that, but they couldn’t have planned it better if they tried.

Anyway, this is just more utterly predictable lemming behavior.

When the lemmings, er… “analysts” start their upgrade parade, then you’ll know the bottom has been found.MacDailyNews, November 26, 2018

In fiscal year 2018, Apple’s revenue grew over $36 billion to $265.6 billion. For the current quarter, Apple has guided for revenue between $89 billion and $93 billion, a new all-time record. (That’s revenue of roughly $1 billion — with a B — per day.)

When analysts learn to see without the unit share blinders Apple has just removed, hopefully their eyes won’t pop out of their heads when they finally see those huge numbers and realize how very much more is to come.MacDailyNews, November 28, 2018

22 Comments

    1. Just my 0.02€:
      IMHO iPhones are too expensive. It is true that, if Apple would lower its prices (closer to break-even), its profits would be much lower. But then Apple would be competing on features with S, H, etc.. Obviously, those competitors would lower their prices to the point they very little room for profits at all…
      It is this secondary (price war) effect from which Apple would gain the most (think 100% market share).

  1. The numbers are soft for iPhone units because Pipeline Tim, just like almost every other Apple Sku, has NEGLECTED the customer base. I am aware many like the phones, I get that; but there is also a HUGE audience that WANTS a 4″ SMALL iPhone.. and Apple doesn’t offer one. Just like a display and mac pro that is up to date in valuation for the money asked. It is so clear to me that Tim is more concerned over making appearances than having things get done at Apple in a timely manner. I am not a fan of Tim’s unfocused Apple, and apparently so are many others and it’s starting to show its head. Now I am a HUGE Apple fan and will be with the company forever, but it is SO frustrating to watch this poor excuse of a CEO have the most amount of money and resources and the results are lacking all over the place. I keep pushing this -https://www.change.org/p/apple-board-of-directors-remove-tim-cook-as-ceo-of-apple

    1. The Dow Jones industrial and NYSE indexes are lower now than they were a year ago. They have been dragged down by companies like Apple that are vulnerable to instability in international trade. (Apple gets 60% of its income outside the US.) The instability is not Tim Cook’s fault.

      1. However the lack of diversification in manufacturing sites and in product selection are 100% Timmy’s fault. This is why it is Apple dragging down the S&P 500 instead of the other way around.

        You can indeed thank international trade instability on the incompetence of the trump admin.

    1. You have a point about the spike between August to beginning of October .. it went up way too fast .. and its reasonable to iron that out.

      But the reaction to all these conjectures and speculations and Fud.. and the negative bias is way way too much. Imo.
      .

      1. Okay, but the hype in favor of Apple (not in stocks) has always been way over the top too.
        Don’t you think that has something to do with the stock price? Consumer electronics marketed as fashion and aspirational perfume?

        Don’t believe me? Poorly upgradable (if at all) “Pro” machines and censored mobile.

  2. I know they have enough cash to stay afloat, but there’s no denying it: Tim Cook’s millennial-run Apple sucks. I say that as a 30+ year user. They are a joke that actually does now make the ‘toys’ they were formerly just accused of making, and they do it in the most annoying fashion possible. Not good.

      1. Yes – toys. The advantage their unique architecture had used to be legitimate. Those days are long gone, and I defy anyone to do their work on a modern Apple touch device without first essentially converting it into a computer through peripherals. I don’t think a lot of millennial users are even aware of what constitutes ‘work’, let alone work done well. And if you are responding to me from your parent’s house, I am dismissing you outright. They are flailing in the markets because they just aren’t all that compelling anymore.

        1. Wow… yes millennials dont know what work is…but im sure u fo!

          Everything at Apple, Googke, Microsoft, Amazon, Facebook, Intel, Nvidea, Jpl, Boeing… Sony… Starbucks…etc etc etc.. just gets done out of the thin air..
          The only people who understand work and get it done personsly are grandma and grandpas in their brick and mortar stores Right!?

          Catch up with times buddy… get out from under the rock u live under.

          Calling some of the highest tech communication and computer devices toys…. and all millennials cluless, incapable, basment dwelling irresponsible nobodies …wow
          What does that make you….
          I know the answer.. but i leave it at that.

          1. The tag team of John Smith and Sean is a broken record one-trick pony SHOW now old for years. They do not possess an original thought and totally incapable of an honest assessment of Apple. In a word: BRAIN DEAD.

            James is spot on and you two clowns are simply IGNORANT. Grow up and get a grip…

  3. MDN is once again crowing about stock buybacks, which were once illegal (for good reason).

    I for one am happy to see that all of the Apple executive’s stock options are “out of the money” and worthless.

    ROFL

  4. A few days ago Foxcon, TSMC & Pegatron posted record or near record profits for November. Other than Macdailynews, Appleinsider and 9to5Mac, I could not find a single analyst that also reported the news. That is because these results are totally contrary to their conjecture that iPhone sales are tanking. They are on a mission to drive the stock down.

    1. AAPL had a good run up this year, more that usual, so it is not surprising the market is trying to run it down. Also Apple are being punished for changing their reporting structure.
      I think we all know Apple will post record numbers again in January. The market will not react on the upside unless the results are stellar
      FWIW APPL has outperformed most markets and funds and for me has significantly contributed to the growth of my 401k. I don’t see much cause for concern and have been through these dips many times.

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