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Shares in Apple have plunged to a one year low after analysts downgraded the stock after it was revealed consumer spending with the company had slowed.
Shares in Apple have plunged to a one year low after analysts downgraded the stock after it was revealed consumer spending with the company had slowed.
With the entire US stock market currently in the midst of a credit crunch, the downgrade is particularly harsh. Apple stock fell 16 percent to level out at $US107.50 after reaching a low of $100.59 (the lowest since 2007)
Market analysts suggest that growth in the PC market is slowing – with a general consumer shift towards low end computers and net books – of which Apple has no market share – thus resulting in lowered confidence in the brand’s stock.
Speaking with the Sydney Morning Herald, Morgan Stanley analyst Kathryn Huberty suggested that even in the best of cases, Apple’s earnings growth will slow down from the quarter that ended in June. She cut her earnings estimate for fiscal 2009, which just started, to $US5.47 from $US5.91 per share.
Apple has already forecast a drop in margins for just-ended quarter and 2009 because of back-to-school promotions and the launch of new products.
Source:
SMH
