Apple’s Shares Dropping?
06.13.07 - 04:10pm
Apple’s shares have dropped sharply following news on Wednesday that the new web browser Safari had numerous bugs, on what many perceived as a lackluster keynote speech by Steve Jobs at the WWDC, and on fears that the iPhone won’t live up to the hype.
Apple’s stock has been on an unprecedented rise with the continued build-up of the iPhone but all of a sudden investors seem to have become edgy.
The stocked dropped to 116.05 in afternoon trading on Wednesday down from highs of $127.61. Andy Hargreaves an analyst with Pacific Crest Securities blames it on anxiety over the iPhone’s capabilities. He said, “It’s because of the launch date announcement, it’s because of people getting a little bit of a closer look at the iPhone through demonstrations and what not, and thinking it’s not going to live up to all the hype.”
Hargreaves maintains his “Outperform” rating on Apple however with a target price at $130. He also added, “But i think what people miss in talking about this is that Apple as a marketing machine is unrivaled in technology and right now in consumer electronics in general.”
Analyst Jonathan Hoopes with ThinkEquity lowered his rating from “buy” to “accumulate”. He said that while he “loves” Apple he believes the iPhone has been overplayed. He said, “The stock is overbought on the hype and hoopla of the yet-to-be-launched iPhone. While we may be wrong, we believe the near-term `easy money’ has already been made.”
Apple was downgraded to the equivalent of a “hold” rating at ThinkEquity Partners.
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