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.
Regards,
George