Economic Downturn Hits Apple Hard!

Prices of Apple (AAPL) stocks took a severe blow following warnings from two separate analysts. Mike Abramsky with RBC Capital has downgraded Apple’s rating from “Outperform” to “Sector Perform,” lowering their stock target from $200 to just $140. Similarly, Morgan Stanley analyst Kathryn Huberty switched her rating from “Overweight” to “Equal Weight,” dropping her predicted target from $175 to $115.

Since the announcements, Apple’s stock has dropped over $20 (at the time this was written), resulting in one of the biggest price drops in over two years for the company.

So why the sudden pessimism from the analysts? Most of it is linked to the Mac. Mike Abramsky says that it’s due to a “worsening consumer spending environment,” specifically in relation to Macs. A survey from september indicated that just 29% intended to buy a MacBook in the next 90 days, compared to 34% in August, and only 26% for a desktop compared to 30% in August. It is estimated that this is one of the biggest drops in two and a half years.

Huberty said that higher-end computer sales are quickly loosing ground.

via iphonealley

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One Response

  1. might of hit them but not the big boys there,,there worth milions ,, me and you mate are just pawns in there big game of chess,,

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