JP Morgan Cuts Forecasts for Apple, AAPL Drops 5%

| Apple Stock Watch

J.P. Morgan analyst Mark Moskowitz lowered his earnings and sales forecasts for Apple Inc.'s March quarter a move that pushed shares in the company to the forefront of a tech sector retreat, and down more than 5%.

Mr. Moskowitz cut his earning per share estimates from US$4.82 per share to $4.73 per share, and his revenue projections from $34 billion to $32.98 billion. The cuts were based on the slowing global economic environment, which he thinks will result in lower Mac and iPhone sales for Apple.

He also cited "research contacts" who said that Mac and iPhone sales have been "trending below our prior expectations."

As of this writing, shares in the company are trading lower at $84.12 per share, down $4.72 (-5.31%), on strong volume. The rest of the tech sector isn't faring any better.

*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.  

Comments

nickstr

A 2% earnings reduction that results in an 5% stock sell-off?  Apple tends to be the favorite child of the upper middle class.  I would be surprised if their earnings slow down to even 20% growth in April.  Don’t forget that all the iphone sales are spread over 8 quarters, so they already have close to a buck in the bag for April.  Can they make another .25 per share off of all their other items?  I would bet yes.

lrd

I didn’t know JP Morgan was still in business! I’d
bet Apple’s worth three times more than JP.

Constable Odo

Even though the stock was downgraded by J.P. Morgan, it’s the fault of investors for selling off their shares.  These investors are very foolish since Apple, the company is very secure with plenty of cash and deferred revenue coming in every month.  There’s no reason to sell off shares like that when if they invested in anything else it would just lose more value.  Apple will likely rebound next week and then they’ll just have to pay more for the shares they dumped.  This panic sell-off of shares doesn’t make much sense.

Neil Anderson

Considering the economic climate, Apple’s doing way better than most.

lrd

Wall St. should be called Welfare St. And JP Morgan a welfare recipient.
And we’re dumb enough to listen to welfare recipients?????

Tiger

So what has happened since their downgrade?

Apple’s stock is up 2.33%.

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