Agoracom Blog

Apple ($AAPL) Drops Below $120 – PYMWYMI Prediction Comes 1 Month Early

Posted by AGORACOM at 8:49 AM on Monday, September 29th, 2008

Not to gloat folks but I called $120 $AAPL back in June when it was trading over $174.00.  Apple fell through $120 this morning on both market weakness and, more importantly, these downgrades.

The real back-pat here comes from comparing the reasons for the downgrades with those I gave back in June.  If you don’t have time to go over them, let me sum it like this:  Higher oil prices + falling economy  = bad news for expensive Apple items.  I predicted consumers would substitute cheaper/good enough products to get the job done.

Today, Morgan Stanley states:

“Morgan Stanley analyst Kathryn Huberty cited a “decelerating” growth in
personal computer unit, while noting that the remaining source of growth
was increasingly in the sub-$1,000 market where Apple does not play.”

RBC states:

“…recent declines in consumers wanting to buy a Mac desktop or laptop
were the biggest in the last two and a half years.”

PYMWYMI – Put Your Money Where Your Mouth Is.

UPDATE: Apple trading at $110-$111 as of 10:10 AM.


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