Investors remain concerned about the company’s prospects for growth in the morning reported its fiscal first-quarter results.
Apple CEO Tim Cook unveiling the iPhone 5.
(Credit: James Martin/CNET)
It seems that Wall Street is still suffering from a hangover from Apple.
Apple yesterday released its fiscal first-quarter results, but I hammered for it. Now it’s the morning after, and investors continue to run for the hills. The stock has fallen by more than 10 percent to $ 460.76, erasing almost $ 50 billion off its market value.
The results themselves were not bad. In fact, they were quite good: record sales of the iPhone and iPad, almost $ 55 billion in revenue and $ 13.4 billion of profit.
But investors are not looking the way Apple did, but they are more interested in how you will make. And ‘here that the legitimate concerns of a slowdown in growth begin to pop up. In particular, a new policy on a range presumably more accurate estimate of revenue suggests that Apple will not blow away its numbers expected in the coming quarters.
“We believe that the reason Apple is doing is to manage in a more aggressive way of expectations in an attempt to avoid the thought wildly consent,” said Gene Munster, an analyst at Piper Jaffray.
Watch CEO Tim Cook sent in the last quarter: the company has done anything but beating expectations. The last few months have seen investors readjust their expectations of the company, realizing its enormous growth trend can be completed.
Oppenheimer analyst Ittai Kidron issued a memorandum entitled “Only one of the boys,” and said that people will need to start seeing Apple as another high-flying technology company – good for everyone else, but a disappointment compared the dominant stellar run it has had over the last few years.
Jefferies analyst Peter Misek was more direct, downgrading its rating on Apple shares, noting that the slowdown in demand for the iPhone “is real and material.” Also worrisome was the belief that once the company’s high level of profitability will continue to slide.
Apple executives, meanwhile, did not really help their case in yesterday’s conference call with analysts. When asked where he sees the market share of Apple in the high-end smartphone, Cook has responded by saying that the company only cares about making good products – a response that apparently provoked a laugh by analysts. Cook seemed to dance around questions about future demand and how Apple would respond to the spread aggressive competition from major phones.
Although applications for Apple dodge is par for the course, the lack of response, including increased control of the company is unlikely to stimulate optimism among investors whose confidence is already shaken.
Yet, while the tone among analysts was negative this morning, there are still many who maintain their “buy” rating on the stock, with many suggesting that the current sell-off may present a buying opportunity for investors looking of a deal.
“In the medium term, the risk-reward is attractive,” said Morgan Stanley analyst Katy Huberty, although he noted that in the immediate future, he sees very high. But she, like many other analysts are banking that a new product line in the summer will provide a much-needed catalyst for growth.
It ‘s the question of whether Apple can offer as it once was, that so many investors scratching their heads.