Well, unlike when I first posted this news and the market was only down a little while Apple tanked, now they're both in the basement.
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Apple Stock Tanks: Biggest Drop in Seven Years
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Analysts downgrade AAPL, Apple stock dives over 15%
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While we typically don't follow the ebb and flow of Apple's stock (AAPL) price on MacRumors, today the value of the company dove over 15% when two analysts cut their ratings on Apple.
As reported by The Wall Street Journal, RBC Capital Market and Morgan Stanley both downgraded Apple's value from bullish "outperform" or "overweight" to more neutral "sector perform" or "equal weight". Both cited concerns that Apple may not be able to maintain its traditionally high margins in the face of decreased consumer electronics spending and heightened competition.
Indeed, Apple had hinted at possible margin erosion in their last quarterly conference call. Tomorrow is the last day of the fourth fiscal quarter of 2008.
While we typically don't follow the ebb and flow of Apple's stock (AAPL) price on MacRumors, today the value of the company dove over 15% when two analysts cut their ratings on Apple.
As reported by The Wall Street Journal, RBC Capital Market and Morgan Stanley both downgraded Apple's value from bullish "outperform" or "overweight" to more neutral "sector perform" or "equal weight". Both cited concerns that Apple may not be able to maintain its traditionally high margins in the face of decreased consumer electronics spending and heightened competition.
Indeed, Apple had hinted at possible margin erosion in their last quarterly conference call. Tomorrow is the last day of the fourth fiscal quarter of 2008.
That's why it was a big deal this morning when it was down 20% and the market was only down 2%...
It does create a nice buying opportunity, but I'm not sure we've hit the bottom yet.
interesting to see how many people are actually still paying attention to the investment banks. correct me if i'm wrong, but wouldn't this be a good time to buy aapl since the 3rd quarter runs from october to december, and includes the holiday season?
This series of events is a buying opportunity. Buy puts and use the proceeds to buy stock.
Rocketman
Rocketman
So how is RBC Capital Market and Morgan Stanley's performance as companies? As good as Apple's I wonder? Maybe Apple's board should issue warnings about the banks, they seem better qualified to run a business!
I hope Apple start buying their own stock back.
I hope Apple start buying their own stock back.
They were just ahead of the broader drop
No seriously though, you are right. Those downgrades popped them hard.
This holiday season will be terrible, consumers do not have money to spend on frivolities. Black Friday may not live up to its name.
Greedy bankers
What happened to the RBC & MS values?
RBC Capital Market and Morgan Stanley both downgraded Apple's value from bullish "outperform" or "overweight" to more neutral "sector perform" or "equal weight". .
What happened to the RBC & MS values?
Last I saw, it was down under 105. Unless you're a big risk taker, it's not time to buy until the market settles down a bit more. I think it's probably going to dip under 100 before it starts back up for good.
Apple is not superhuman....
with this obvious economic collapse we're headed towards, people are not going to have the money to buy iPods with their maxed out credit cards anymore. Perhaps this particular sell off is excessive for one day, but people should be wise to see that the last thing people are thinking about is buying electronic crap when they have just been laid off or who's savings are in the tank. Apple is going to suffer like the rest of companies who make their money on people's disposable income (or credit).
with this obvious economic collapse we're headed towards, people are not going to have the money to buy iPods with their maxed out credit cards anymore. Perhaps this particular sell off is excessive for one day, but people should be wise to see that the last thing people are thinking about is buying electronic crap when they have just been laid off or who's savings are in the tank. Apple is going to suffer like the rest of companies who make their money on people's disposable income (or credit).
And the Dow is down over 650 points so far.
Not a good day.
Anyone know what AAPL's largest single day drop is?
Not a good day.
Anyone know what AAPL's largest single day drop is?