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Home / Business / Apple's "darkest day" in the iPhone age leads to a flood of price cuts by analysts

Apple's "darkest day" in the iPhone age leads to a flood of price cuts by analysts



Apple Inc.'s shares were strengthened on Thursday after the technology giant's sales warning triggered an avalanche of price cuts by Wall Street analysts.

Half of the 41 analysts surveyed by FactSet dropped their targets, some even $ 100

The average target fell by around 13% to $ 187.03 (from $ 215.91 on Monday), marking the lowest Average target since its end in October 2017 at $ 179.32. The average rating remained equivalent to Buy as the new target was around 32% above current prices.

The stock

AAPL, -9.96%

fell $ 1

5.73 or 10% on Thursday, closing at $ 142.19 since April 2017. This is the largest one-day percentage Decline since January 2013, while according to FactSet, the price decline was the largest since the stock started trading in December 1980. The price decline has reduced by 107 points compared to the price of the Dow Jones Industrial Average

DJIA, -2.83%

and sank on Thursday by 660 points.

Do not Miss : Opinion: Apple is coping with Wall Street's fears of massive revenue shortfalls.

Related: : Apple's Biggest Losses in the iPhone Era: Where's Today's Descent?

The sell-off pushed Apple's market capitalization to about $ 674.7 billion 31, 2017 according to FactSet. Apple's market capitalization fell under the Google parent Alphabet Inc.

Whois, -2.77%

$ 713.2 billion to beat Apple down to number four on the list of the most valuable US companies.




Goldman Sachs analyst, Rod Hall, cut his price target by 42% to $ 140 from $ 240 while maintaining the neutral rating over the last 11 months. Apart from China, Hall is also concerned about the weaker rates for iPhone replacement parts. Compared to Apple's current relationships, the company is able to sell Nokia Corp. unbalance more than a decade ago. Read about Apple's sales warning.

Monness Crespi Hardt analyst Brian White has also lowered his target by $ 100 to $ 200, but maintained his rating and noted a rating of $ 25.29, which he believes is "depressed" Share to keep him bullish.



FactSet, MarketWatch

Meanwhile, Timothy O has downgraded Shea from Jefferies Apple to hold on, and lowered his price target from $ 225 to $ 160 "19659002" "We still believe that Apple can build a massive service business over time. But [Apple] has not missed its guidance for years, so the extent of this failure suggests that it navigates in unknown waters, "wrote O Shea in a note to customers. "We are marginalizing and waiting for clarity as the uncertainty surrounding the hardware business increases."

In its most recent Apple annual report, filed on November 5, iPhone sales of $ 166.7 billion represented 63% of total revenue (62%). a year ago.

Wedbush analyst Daniel Ives lowered his price target to $ 200 from $ 275 and said the "massive" negative outlook represents "Apple's darkest day in the iPhone era," which began in June 2007.

Related : This is how Apple's stock behaves around iPhone launch events.



FactSet

"Last night, Apple provided a bombshell negative advance notice that will shape Cook & Co. for many years to come. "Ives wrote in a research report. "Although the company has had some weak quarters over the last 20 years that missed Street's expectations, last night in the modern iPhone era was clearly Apple's darkest day for us and a challenging growth period for the company (and its investors) . "

Tim Cook became Apple's Chief Executive Officer in August 2011.

Ives maintained its rating despite the "black eye" results, believing that Apple is an "installed base story of 750 million active iPhones worldwide". Nearly half of the respondents who have been able to survive for the next 12 to 18 months.

Apple's "bomb" also hurt its suppliers' stock, even though many had issued revenue alerts in recent months that had responded to weaker overseas demand for a large smartphone customer.

Stocks of Lumentum Holdings Inc.

LITE, -8.41%

lost 8.4%, Qorvo Inc.

QRVO, -9.06%

fell 9.1% and Skyworks Solutions Inc.

SWKS, -10.65%

collapsed by 10.7%. Austria-based AMS AG

AMS, -23.17%

collapsed in trade overseas by 23.2%.

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