I remember the day when Apple was ready to hit the 4 point mark or $1,000 stock price, to be exact. Suddenly, from there everything went upside down and the number started to drop. The latest report coming from the company is not good. The stock now has a price somewhat below $400 and this is down 25 points for this day. Some of the experts see a big sign of weaknesses for this iPhone maker.
Around 10 a.m. this morning the Apple stocks went bellow $400. The lowest mark so far is $398.11 and after this, the stocks has rebounded to the $403 mark. Some analysts have put the blame on the disappointing and weak forecast for the quarter made by Cirrus Logic which is a supplier for Apple. It supplies audio and analog chips to the Cupertino company and they have said that they will record net total inventory for their fiscal 4th quarter which ended in March of $23 million. This is due to some reduced forecast for one certain customer. They didn’t say it’s Apple, but they have accounted over 90% of their business in the quarter of December. This was a key indicator for Cirrus’s forecast of the demand.
This market action lost 25 points in their shares today. This is 6% of their previous total value. This has been reported to be a psychological barrier and they will get over it very soon. But the thing that concerns the most is the stock continues to fall down after the last year’s awarding of the investors with the gains from that very same year.
The past months weren’t very kind to the Cupertino company if you see them as a company on the stock market. Last year, their shares began their downfall as some hedge fund managers have been selling their holdings. The stocks were hammered in January after Apple has announced their results from the first quarter.
And as the stocks fall this highly-recognized company is making record revenues. Even with this, the earnings were a little bit short of the expectations and that has prompted the investors to get out of there. Some other speculation claimed that Apple has cut some of the component orders which are used to make the iPhone. This has pushed back the stocks even more and all the analysts have said that they need to use their magic stick to start making some changes.
Previously, Apple was hit with many complaints that they are sitting on a chest full of cash and refusing to share any of it with their investors. The performance of the stock was even more hurt by the lacking of innovational product launching since the last fall.
Keeping all this on our minds, we can notice that when some report comes up, the Apple’s stocks immediately notice a certain fall. Maybe Apple is under some kind of a pressure but I can see them rising again by the end of this year.