BY JIM FLINK
ANCHOR  LOGAN TITTLE


Has Apple -- soured?
Seems so.  The stock hit a six month low on Friday.
Ars Technica has some of the reasons why.

“Analysts say that Apple has had a string of misfortunes lately, ranging from missed earnings estimates, management shakeups, missteps on mapping software, supply chain problems, and increased pressure from competitors.”  

Others say, this is more of a market correction -- on steroids.  Too many investors see a fat Apple with no room to grow.  Here’s an analyst on CNBC with that.

“Once you become a $500 million company, that is an overweight of about six or seven percent for a lot of portfolio managers, it is awfully hard to continue that run ad infinitum....”
“Where does this become an overweight again...”


Oh, but there’s more shaking this Apple from its tree.
Something much bigger, according to Cult of Mac, completely unrelated to the company.

“...many investors may be feeling insecure about possible future hikes to the capital gains tax as part of the US government’s move to avoid what’s being called the fiscal cliff. Because Apple’s stock gained so much value very recently, many Apple stockholders will possibly face steep taxes on their capital gains from this past year.”

Then, there’s competition.
Wall Street Journal and Barron’s analyst Jack Hough says, this has become a battle between Samsung and Apple in a mobile industry showdown.

“These are two stocks that have done very well in recent years.”
“And they both make great products.”
“Together they’re probably going to account for about half of the world’s smartphone sales this year.  And nearly all of the industry’s profits.”


Still others note, the Android platform, with all its many players, is now dominating over Apple.
And Wall Street Cheat Sheet says, that’s a trend Apple will be hard-pressed to reverse.

“Apple’s “lone wolf” strategy has internalized profits and helped it grow, but it’s also clearly harmed it. Production and supply issues are right now undermining sales and as a result earnings expectations are being slashed ….The company has positioned itself in such a way that it needs to not just outperform a single competitor, but the entire market in which it operates.”

Apple closed the day Friday at $527 a share -- nearly $200 off its share price from just two months ago.
 

Apple Souring? Fears, Failings Drive Stock Selloff

by Jim Flink
0
Transcript
Nov 17, 2012

Apple Souring? Fears, Failings Drive Stock Selloff

BY JIM FLINK
ANCHOR  LOGAN TITTLE


Has Apple -- soured?
Seems so.  The stock hit a six month low on Friday.
Ars Technica has some of the reasons why.

“Analysts say that Apple has had a string of misfortunes lately, ranging from missed earnings estimates, management shakeups, missteps on mapping software, supply chain problems, and increased pressure from competitors.”  

Others say, this is more of a market correction -- on steroids.  Too many investors see a fat Apple with no room to grow.  Here’s an analyst on CNBC with that.

“Once you become a $500 million company, that is an overweight of about six or seven percent for a lot of portfolio managers, it is awfully hard to continue that run ad infinitum....”
“Where does this become an overweight again...”


Oh, but there’s more shaking this Apple from its tree.
Something much bigger, according to Cult of Mac, completely unrelated to the company.

“...many investors may be feeling insecure about possible future hikes to the capital gains tax as part of the US government’s move to avoid what’s being called the fiscal cliff. Because Apple’s stock gained so much value very recently, many Apple stockholders will possibly face steep taxes on their capital gains from this past year.”

Then, there’s competition.
Wall Street Journal and Barron’s analyst Jack Hough says, this has become a battle between Samsung and Apple in a mobile industry showdown.

“These are two stocks that have done very well in recent years.”
“And they both make great products.”
“Together they’re probably going to account for about half of the world’s smartphone sales this year.  And nearly all of the industry’s profits.”


Still others note, the Android platform, with all its many players, is now dominating over Apple.
And Wall Street Cheat Sheet says, that’s a trend Apple will be hard-pressed to reverse.

“Apple’s “lone wolf” strategy has internalized profits and helped it grow, but it’s also clearly harmed it. Production and supply issues are right now undermining sales and as a result earnings expectations are being slashed ….The company has positioned itself in such a way that it needs to not just outperform a single competitor, but the entire market in which it operates.”

Apple closed the day Friday at $527 a share -- nearly $200 off its share price from just two months ago.
 

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