Shares in Apple Inc. plunged more than 13% during the morning trading session Monday, as concerns about the credit crisis in the U.S. are beginning to mix with concerns of a slowing economy. In addition, two analysts cut their ratings on the stock citing a slowdown in PC sales and broader concerns relating to the economy.
Morgan Stanley analyst Kathryn Huberty cut her rating on the stock from Overweight to Equal Weight on concerns of slowing PC sales. In a reasearch note to clients, Ms. Huberty said that Appleis lack of a strong position in the sub-$1,000 computer market -- the only market showing growth -- could hurt the company.
Ms. Huberty cut her profit growth estimates from 9% to 6%.
RBC Capital analyst Mike Abramsky also cut Apple, rating the stock as a Sector Perform, down from Outperform. Mr. Abramskyis concerns center around the broader electronics market, where he said that 40% of respondents surveyed said they planned on spending less on electronics in the next 90 days.
Shares in Apple were down more than 16% in the opening hours of Mondayis session, but showed a slight rebound later to trade at $110.85, a loss of $17.39 (-13.56%) per share. Volume was very strong.
*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.