Apple Earnings Call: It was not that long ago when Apple Inc. (NASDAQ:AAPL) was considered the most valuable company in the world. However, things have changed quite a bit since the company’s earnings call earlier this week.
There was a time when everybody was wondering how high Apple could go. Now, analysts and investors are wondering how low it will go before things turn around.
For a recap of where things stand right now, read this brief excerpt from the USA Today:
“In trading Friday, shares of Apple (AAPL) dipped below $441 a share, reducing its market cap to $413.96 billion, below Exxon’s $416.95 billion (XOM). Last year, investors and analysts swooned as Apple shares soared and it surpassed the oil giant’s longstanding No. 1 spot.”
With its recent “weaker-than-expected revenue,” shares continue to fall. The USA Today article sums it up best by saying, “It’s the latest in what’s been a major deflation of a one-stock bubble, falling 36% from its high in September.”
The big question now is this: what does the future hold for Apple Inc. (NASDAQ:AAPL)? Will things start looking up again in the near future? For some answers, check out this article: Jon Erlichman Discussing What is Next for Apple Inc.
At this point, it is easy to see that Apple is dealing with some strong downward momentum. This has led to lots of changes thus far, with more on the horizon.
Here is what some analysts are thinking, as shared by USA Today:
“Slashing price targets. Seven of the roughly 50 Wall Street brokerage firms that follow Apple stock cut their price targets Thursday, says data from Briefing.com. Compare that with September 2012, when Apple shares were peaking and four Wall Street firms upped their price targets to an average of $757 a share. Prior to Thursday, another five analysts cut price targets in January. Analysts cut targets after price falls because they “want to look less silly,” says Sheraz Mian of Zacks Investment Research.”
“Taking down price targets by a big margin. The seven analysts who cut price targets Thursday took them down by 18% on average to $589 a share, Briefing.com data show. Deutsche Bank, for instance, slashed its price target on Apple from $800 a share to $575, a 28% cut. The average price target for Apple is now $641, down from $720 before earnings were released late Wednesday, says John Butters of FactSet.”
“Cutting their forecasts for earnings. It’s not just analysts’ forecasts for stock prices that are being cut, but their views on fundamentals such as revenue and earnings, too. In the one day after the earnings release, analysts have cut their forecast for Apple’s full-year profit by nearly 7% to $52.39 a share, Butters says.”
Now it’s your turn: what do you think about the future of Apple Inc. (NASDAQ:AAPL)?
Check back here for more updates on Apple Earnings Call.
DISCLOSURE: I have no positions in any stock mentioned.
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