Shares of Apple sink after supplier Cirrus warns of weak results

Posted:
in AAPL Investors edited January 2014
Shares of AAPL stock briefly dipped below $400 on Wednesday as concern about the company's impending earnings report, as well as its future, reached a fever pitch.

Apple stock hit a low of $399.75 Wednesday afternoon at 12:51 Eastern. The company's stock has traded just above $400 for most of the day, down more than 5 percent from its opening price of $420.60.

Apple

The stock is now trading at levels not seen since 2011. Its market capitalization value has lost more than $275 billion since late 2012 alone.

Market watchers believe Apple's plummeting shares on Wednesday could be attributed to a warning of weak results that was issued by supplier Cirrus Logic. The company, which makes energy and audio chips, notified investors that it would see lower shipments of a high-volume product as an unnamed customer migrates to a newer component from Cirrus.

Apple is a key customer of Cirrus, using its audio chips in its popular iPhone and iPad devices. The strong sales of iOS devices have been attributed with boosting Cirrus in recent quarters.

It's now less than a week before Apple's next quarterly earnings call, scheduled to take place on Tuesday, April 23. Concern over the company's performance continues to rise, as some on Wall Street expect Apple could miss its own guidance for the first time in recent memory.

There have been signs of slowing growth at Apple, as products like the iPhone have cooled off and the PC market continues to struggle. Apple's earnings for its previous holiday quarter were flat year over year with net profit of $13.1 billion.
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Comments

  • Reply 1 of 400
    srangersranger Posts: 469member
    Time to Buy.....Period...
  • Reply 2 of 400


    Hilarious.


     


    I want to see it go down even a little more... what happens? Panic and the thing has a blue screen?

  • Reply 3 of 400
    stelligentstelligent Posts: 2,680member

    Quote:

    Originally Posted by sranger View Post



    Time to Buy.....Period...


    Many thought that too, at $600, $500, $450 and now ... :)

  • Reply 4 of 400
    jakebjakeb Posts: 557member
    Is this worse than Apple's projections? They said in the last report that this quarter wouldn't be one of their best.
  • Reply 5 of 400
    apple ][apple ][ Posts: 8,360member

    Quote:

    Originally Posted by sranger View Post



    Time to Buy.....Period...


    That's what people said at $700, then $650, then $600, then $550, then $500, then $450 and now at $400.image


     


    As for me, I'm not holding any AAPL at the moment. I'm just waiting patiently until the carnage is over. I'm in no rush to hold any AAPL. The stock action just gets more and more ridiculous by the day.


     


    I'm actually taking a short trip to Las Vegas soon. At least there, I'll have fun while blowing some money away. 

  • Reply 6 of 400
    rogifanrogifan Posts: 10,669member
    My guess is if the quarter isn't great (even if it meets or exceeds wall streets lower expectations) there will be calls for Cook's head. I think it was a big mistake for Apple to go 6 months (or possibly longer) without any new product announcement. Now maybe that wasn't the plan and things are delayed (as we've heard rumors about). But still the silence creates a vacuum and its being filled with a lot of negativity that is driving the stock down. That also impacts the way the media reports on Apple which in turn affects the public perception of the company. Cook told Goldman Sachs that Apple "doesn't have his head in the sand" but I think there are enough out there thinking the exact opposite right now. Hence the stock being at a 52 week low.
  • Reply 7 of 400
    evilutionevilution Posts: 1,343member


    So, Apple is dumping Cirrus and going elsewhere for their chips, Cirrus sell less chips and Apple stock falls.


     


    No, I don't think this is the reason for the price drop. 

  • Reply 8 of 400

    Quote:

    Originally Posted by Apple ][ View Post


    That's what people said at $700, then $650, then $600, then $550, then $500, then $450 and now at $400.image


     


    As for me, I'm not holding any AAPL at the moment. I'm just waiting patiently until the carnage is over. I'm in no rush to hold any AAPL. The stock action just gets more and more ridiculous by the day.


     


    I'm actually taking a short trip to Las Vegas soon. At least there, I'll have fun while blowing some money away. 



     


    I would be laughing my ass off too if I wasn't holding any shares, unfortunately I am.  I held for this long, can't back out now!


     


    The price has been driven by rumors and speculation for a while.  Now it's time for the earnings report and some product launches.  I really hope Apple is just being secretive and has something big planned for this year.

  • Reply 9 of 400
    gwmacgwmac Posts: 1,796member


    Apple's stock has been in a downward spiral for a while. Valuation is always about the future. The future is the only thing that matters. Since the release of iPhone 5, the market has started to question the future of Apple as the world’s leading innovator. In the 1980s, DEC was at the top, but the brand is dead. RIM was the leader in early 2000s but is increasingly irrelevant. You can also add the 1990s hotshots Palm, Yahoo!, and AOL. Apple itself was close to bankruptcy in the mid 1990s. Apple keeps a whopping $140 billion in cash. It sounds sweet if you are a naive investor. But, shrewd investors should question the rationale. After all, you didn’t invest in a bank. Why is Apple using your investment to just save in bank deposits earning 2%? The stock decline needs to be halted and hopefully reversed to a growth stock again. 


    Most analysts are asshats and have a lot of ulterior motives for running down AAPL. So yeah, I do think this will be an extremely important year for Apple and we will see if Tim Cook is the man with the plan and vision for the future or will just be conservative and rest on the laurels of past glory trying to maintain current marketshare. 


    Many if not most here would argue the competition hasn't caught up but for most typical consumers they really don't see any big difference between high end smart phones anymore besides screen size. All of them are fast, have good enough camera, and allow you to use nearly all the same apps.  A decade ago, Nokia, Motorola, and Sony-Ericsson were the leaders. Moto Razr was the hottest selling phone in the US. Sony was the indisputable leader in Consumer Electronics. Where are those companies now? Consumers are very, very  fickle and the industry moves on very quickly.


    A drop from a high of $705 to $397 today in such a short amount of time is extreme. I used to be a big Tim Cook supporter but he seems more suited to his former job than CEO. Long term, short of a brand new product line with the success of the iPad or massively increased sales for current product lines like the iPhone which generates more than 50% of their revenue I don't see the stock breaking $500 again anytime soon. Short term band aids like stock buy backs and higher dividends would help for a while but Apple has to do something to break this downward spiral. If rumors are to be believed about a 5S then I don't see any upward momentum in shares this year. 


     

  • Reply 10 of 400
    thomprthompr Posts: 1,510member

    Quote:

    Originally Posted by Apple ][ View Post


    That's what people said at $700, then $650, then $600, then $550, then $500, then $450 and now at $400.image


     


    As for me, I'm not holding any AAPL at the moment. I'm just waiting patiently until the carnage is over. I'm in no rush to hold any AAPL. The stock action just gets more and more ridiculous by the day.


     


    I'm actually taking a short trip to Las Vegas soon. At least there, I'll have fun while blowing some money away. 



    How can you possibly know when carnage is over (looking forward, not back)?  You can't.  And by the time you have convinced yourself, it will likely only be because you left a lot of gains on the table.  Then guess what?  You may buy in and then watch it get hammered some more.


     


    The best question one can ask when buying a stock is whether they have reason to believe that the stock will eventually be higher, and if that "eventually" and "higher" satisfy their own time horizons and ROI expectations.  It can always still go down in the near term, because there is a lot of randomness built in to the month-by-month (let alone week-by-week or day-by-day).  Not saying that the reason you come up with will be correct, but it has a better chance of working than trying to avoid some subsequent dips.

  • Reply 11 of 400
    bdkennedy1bdkennedy1 Posts: 1,459member
    Internal restructuring takes time. Wait until Jony Ive's influence starts pouring out of everything. they will be just fine.
  • Reply 12 of 400
    red oakred oak Posts: 634member


    If I hear Tim say one more time "we are in very active discussions about use of our cash", I am going to puke.  Take your time Tim.  Just take your time.  It is a huge lost opportunity not to have a $50+ billion stock buy back program in place right now  


     


    Also, I was moved by Tim "the product pipeline is chock-full" comments last quarter.   It never thought Apple would go 8+ months without any meaningful product releases


     


    I still have faith. This company has the capability to blow the doors of in the 2H of the year.  But they have to execute like mad 

  • Reply 13 of 400
    solipsismxsolipsismx Posts: 19,566member
    What Apple needs are Amazon-like results to turn the stock around¡
  • Reply 14 of 400
    apple ][apple ][ Posts: 8,360member

    Quote:

    Originally Posted by thompr View Post


    How can you possibly know when carnage is over (looking forward, not back)?  You can't.  And by the time you have convinced yourself, it will likely only be because you left a lot of gains on the table.  Then guess what?  You may buy in and then watch it get hammered some more.



     


    I'm not looking to capture the absolute bottom. I need confirmation of an uptrend and there is definitely no signs of that yet. The only trend on AAPL's chart is down. I'm not a chart statistician, and I don't even play one on the internet, but there are various signs to look for. 

  • Reply 15 of 400
    Lol doesn't this always happen then they have another record breaking quarter?

    I'll never understanding how a company can continue to profit and still lose value.
  • Reply 16 of 400
    solipsismxsolipsismx Posts: 19,566member
    red oak wrote: »
    Also, I was moved by Tim "the product pipeline is chock-full" comments last quarter.   It never thought Apple would go 8+ months without any meaningful product releases

    This is quite unusual for Apple. Mindshare needs to massaged from time to time if you want it to grow. Nothing new since last Autumn is far too long, especially with a new CEO at the helm. Now, Tim and Co. might have some really major things in place so this short-term lull will turn out to revolutionize the tech world yet again and show that Apple hasn't lost it and that Tim is the right man for the job but that's a big gamble for them to take... but at this point it's the only one that makes sense for this unattended time span.
  • Reply 17 of 400
    lkrupplkrupp Posts: 6,691member

    Quote:

    Originally Posted by gwmac View Post

    Most analysts are asshats and have a lot of ulterior motives for running down AAPL. 


     


    Speaking of asshats...

  • Reply 18 of 400
    lkrupplkrupp Posts: 6,691member

    Quote:

    Originally Posted by sranger View Post



    Time to Buy.....Period...


     


    Yep, the Warren Buffet rule. When others get pessimistic, you get greedy. Asshats not with standing.

  • Reply 19 of 400
    hill60hill60 Posts: 6,989member


    Quarter after a holiday quarter, of course sales are going down.


     


    It's a seasonal thing that happens every year, regular as clockwork.


     


    Looks like Wall Street is going to fool all of the people, all of the time.


     


    America should just give up, watch TV and eat themselves to death on fast food.


     


    Let Asian companies win.

  • Reply 20 of 400
    spaceraysspacerays Posts: 116member


    Dont know if there is a relation, but all this shit started to happen shortly after Apple started to issue dividends.



    Maybe it's the reason why Jobs didnt want any dividends.

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