Click on chart to see what Apple shares are doing now
NEW YORK (CNNMoney) -- The honeymoon is over -- at least for the time being -- for Apple stock, which has fallen nearly 9% over the last five days of trading as investors take a harder look at the computer maker.
The maker of the Mac, the iPod and iTunes has seen its shares rise 57% this year, peaking at $636.23 at the close on April 9. But Apple (AAPL, Fortune 500) has fallen nearly 9% since then, to a Monday close of $580.13.
James Cordwell, analyst for Atlantic Equities in London, said that Apple's heady gains prior to its peak made the stock "a relatively easy target where people want to take some profit off the table."
He said "there's been a return to the fundamentals" as investors scrutinize demand for the iPad and attempt to forecast the iPhone's trajectory over the next couple of quarters.
Investors are likely to get a better look at the inner workings of Apple on April 24, when the company is scheduled to release its fiscal second-quarter earnings.
"There's likely to be a slowdown as people are anticipating the next model of the iPhone," said Cordwell.
He said that carriers such as Verizon (VZ, Fortune 500) and AT&T (T, Fortune 500) are becoming less generous in allowing customers to trade in their old smartphones whenever Apple releases a hot new product.
"They're tightening their policy because they realize it's affecting their profit," said Cordwell.
Apple might be losing its luster, but analysts still expect growth from the software giant. Apple is expected to report second quarter earnings growth of 55% in the second quarter to $9.90 per share, according to a consensus of analyst forecasts from Thomson One Analytics.
Apple's stock was in a holding pattern in premarket trading on Tuesday, declining by a fraction of a percent. Shares are still up about 43% year to date.
The Department of Justice filed an antitrust suit against Apple and five publishers on April 12 for allegedly fixing prices on e-books. But e-book sales are not a pivotal part of Apple's revenue.
No comments:
Post a Comment