Wednesday, April 17, 2013

Apple briefly drops below $400

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Apr 17, 2013, 11:29am PDT Updated: Apr 17, 2013, 2:52pm PDT

Apple's choppy day: Stock briefly dips below $400


Apple's stock briefly dipped below $400 today as it continues to struggle with consumer demand.
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Tomohiro Ohsumi
Apple's stock briefly dipped below $400 today as it continues to struggle with consumer demand.
Technology Reporter- Silicon Valley Business Journal
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Apple's stock took a 5.5 percent plunge today, briefly falling below $400, its lowest level since 2011 and closing at $402.80. The company has lost more than 40 percent of its market value since its peak in September 2012, according to Reuters.
One factor behind Apple's slide could be a disappointing revenue forecast from key supplier Cirrius Logic, indicating a slowdown in the sale of Apple products like the iPhone and iPad. Cirrius Logic forcasted revenue of $150 million to $170 million, far lower than analysts' estimates of $190 million.
Additionally, iPad mini shipments are expected to drop as much as 30 percent in the coming quarter, according to Digitimes.com.
Apple will report earnings next week, and investors are not sure what to expect as the company faces growing competition from smartphone manufacturers such as Samsung.
Some analysts have started dropping their price targets for the stock.
However, it might be worth keeping Apple in your portolios for the long term, argues Seeking Alpha's Sandeep Godiyal. Godiyal says, "the price fluctuations that Apple is currently experiencing are only short-term glitches and looking at the company's performance over a longer term shows that it still has the potential to be a strong performer."
Companies: AAPL
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