Analyst Praise Couldn’t Prop Up AAPL, Stock Drops 4%

| Apple Stock Watch

Analyst praise of Apple's iPad wasn't enough to prop up the company's stock, which dropped more than 4% Thursday.

Broadpoint AmTech's Brian Marshall, for instance, said the device exceeded his expectations, while Marketwatch reported that Keith Bachman of BMO Capital Markets told his clients that the iPad had "largely met high expectations."

Chris Whitmore of Deutsche Bank said the device could create a "fourth leg" in Apple's product lines, and Charlie Wolf of Needham & Co. said the device should be a success out of the gate.

Despite these endorsements, however, shares in Apple fell Thursday to close at US$199.29, a loss of $8.594 (-4.13%), on heavy volume of 41.6 million shares trading hands.

There were other tech losses in the market, as well, as investors awaited earnings report from Microsoft, SanDisk, Juniper Networks, and others. Apple's new eBook competitor, Amazon, is also expected to announce earnings Thursday.

*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.  

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Comments

Tiger

Other tech losses? That’s an understatement…

AMD dropped 3.79%
Hewlett Packard dropped 3.36%
IBM dropped 2.04%
Motorola dropped 12.43%
Palm dropped 5.9%
TIVO dropped 3.33%
Yahoo dropped 3.38%

and considering that EVERY single time Apple announces a product, there is an immediate drop in the succeeding days, do not take this as a sign of device drag. I’d be more worried if the stock was still up $8.

We now can return to the regularly scheduled trading once the markets decide how they feel about Bernanke being re-upped. It sure had nothing to do with Apple, and everything to do with the Administration and the SOTU last night.

Tiger

PS, Motorola trading was 132+ million shares, over 3x that of Apple’s. This story was meant to capture headlines and readers.

And considering I’m the only one who’s posted and it’s now twice, I don’t think it’s doing much of that!

Intruder

OMG!!!!OMG!!!PANIC!!!!

There. Now you are not alone!  wink

Tiger

Love it.

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