Originally Posted by TenoBell
Not really. Apple's earnings and growth have been impressive. Todays stock fall wasn't about the past quarter but about the future. Because of various factors in the market today investors are squeamish about future growth. Those doubts have little to do with the reality of Apple's future growth. Only the perception.
I tend to agree with this. The outlook is gloomy, not because of a "lacklustre" Macworld, but because everyone has less disposable income for buying fancy electroinc toys right now. People with sizeable loans in particular have seen interest payments increase markedly in recent months. (But hey, isn't that the whole point of interest rate hikes, to make people save instead of spend?)
That said, Apple stock has been overvalued through hype for some time. A correction was way overdue. There can be now doubt that Apple is an outstanding company with very bright prospects long-term, but this sustained hype based on guesswork is insane and succeeds only misleading people who know nothing about how the markets work. They're getting reamed by people who make a living by shorting stocks.
I think Gene Munster of Piper Jaffray is particularly guilty of creating false expectations more than just about anyone. He's made his own firm look pretty stupid as well as himself. It will be some time before Apple stock reaches $250. True, the markets are very volatile and have been so for some time. But, to me this suggests investor caution not bullish optimsim that borders on stupidity.
It may well be that Apple stocks sink to £130. My advice to any investor is HOLD not BUY. I don't think we'll have a true indication of where things are headed until after Easter.