Apple shares open below $100 for first time since 2014
Wall Street's pessimistic view of the iPhone's future continues to drag Apple stock downward, as shares of the Cupertino company opened trading below $100 for the first time in more than a year on Thursday.
Premarket activity brought Apple to $98.72, a 1.97 percent drop from Wednesday's $100.70 closing price. The decline leveled off after trading began, with shares rising to $99.59 at press time.
Apple shares last opened under $100 in Oct. 2014, four months after the company's 7-for-1 split.
Investors remain concerned about the long-term growth potential for the iPhone. The megapopular handset -- and the iOS ecosystem surrounding it -- now account for the lion's share of Apple's revenue and profits, magnifying the effects of any potential slowdown.
Apple is expected to reveal strong holiday sales on its upcoming first-quarter earnings call, but many bears believe that could be the last gasp for growth. Some say that the upcoming March quarter could bring the iPhone's first ever year-over-year sales decline, though that remains a minority viewpoint.
In what may have been a move designed to soothe investors' worries, Apple earlier this week touted record-breaking sales numbers for the App Store. Consumers spent more than $1.1 billion on apps and in-app purchases in a two-week span covering Christmas and New Year's Day, including $144 million on Jan. 1 alone.
Premarket activity brought Apple to $98.72, a 1.97 percent drop from Wednesday's $100.70 closing price. The decline leveled off after trading began, with shares rising to $99.59 at press time.
Apple shares last opened under $100 in Oct. 2014, four months after the company's 7-for-1 split.
Investors remain concerned about the long-term growth potential for the iPhone. The megapopular handset -- and the iOS ecosystem surrounding it -- now account for the lion's share of Apple's revenue and profits, magnifying the effects of any potential slowdown.
Apple is expected to reveal strong holiday sales on its upcoming first-quarter earnings call, but many bears believe that could be the last gasp for growth. Some say that the upcoming March quarter could bring the iPhone's first ever year-over-year sales decline, though that remains a minority viewpoint.
In what may have been a move designed to soothe investors' worries, Apple earlier this week touted record-breaking sales numbers for the App Store. Consumers spent more than $1.1 billion on apps and in-app purchases in a two-week span covering Christmas and New Year's Day, including $144 million on Jan. 1 alone.
Comments
http://appleinsider.com/articles/15/12/15/channel-check-analysts-warning-of-peak-iphone-are-priming-apple-shares-for-monster-buybacks-
Now look at Facebook, Netflix, Google, and Microsoft before this week. They were all at or near all time highs after posting amazing 2015 returns. Apple stock is just very weak right now. I expect it to go down to $80 in a few months.
I don't like to see the share price go down, but these things happen. Apple can't account for external factors like China, etc. The price will catch up to the fundamentals. No big deal. I'm glad Cook focuses on things that are within his control and contribute to the long term success of the company. Screw you Sog.
Apple always gets a nice bump up when they change the shell of the phone. iPhone4, 5, and 6 all had nice unit growth. The S-models have been hit and miss. 4s was huge, 5s barely had growth, and the 6s will probably have a slight decline. That means even if only iPhone6 users upgrade to the 7 we will see a YoY unit growth over the 6s. But of course there will be switchers from Android and some 5/4 series holdouts who skipped the 6. So I expect a nice 8-10% unit growth for the iPhone7. That should should help the stock reach about $125. In the 7s shows growth then we see $140 in a couple of years.
With that in mind I'd wait for $80 share price. If taxes isn't a factor I'd even sell shares now at close to $100 and wait for that $80 price in the Spring. Then you can easily get a 50% return by mid 2017.
The entire market is a bear market. At this point, it doesn't really matter what is going on internally at Apple, the market is going to react negatively regardless.
Samsung's warnings show even greater weakness in the Android market. And China's weakness means that Huawei and Xiaomi are in trouble also.
Apple is still in the best position and it will become evident going forward.
I fully expect to see this at $80 this Spring/Summer when Apple reports iPhone unit declines for the first time ever. I'd wait for that level.
Well you are certainly entitled to your opinion and idiom. I prefer to think the analysts cry wolf too often to manipulate AAPL, however that and the Yuan issues are creating a perfect storm for AAPL so it may well be an excellent buying opportunity. BTW, The cost of Apple's production just went down significantly, I don't see that factored in anywhere.
Plus, flat-rate services such as Netflix, DropBox, Apple Music, Spotify, etc make switching easier and cost-less.
This all results in a re-statement of the Apple share price to sustainable levels.
The firm needs to sell ever more products every year, and they will only be able to do that if they actually sell NEW products every year.
The sky is not falling, but when the iPhone makes up 70% of Apple's revenues, you have to wonder how hard and fast Apple stock can crash.