Shortly after falling to $497 in pre-market trade this morning, Apple’s stock price has teetered on $500 for the first time since February during regular trading hours. Apple’s stock was on a tear during the summer and into the fall, maxing out over $700 in September just before the launch of the highly anticipated iPhone 5.
However, after three quarters of impressive growth, and a huge holiday quarter currently going on, many analysts have downgraded their Apple targets as the stock has subsequently fallen in recent weeks. Apple’s stock is now at a low point today, even with the welcomed news yesterday that Apple sold 2 million iPhone 5s in China during the launch weekend.
Citi Apple analysts Glen Yeung, Walter Pritchard, and Jim Suava cut the price target for AAPL to $575 last night, citing not great enough iPhone demand. Additionally, UBS, Jefferies, and Mizuho Securities all cut their price expectations. Along with iPhone demand, the executive shakeup and Maps debacle assumedly has played a role in the stock decline. Talk of higher taxes on earnings in 2013 may spook some investors, as well.
Perhaps all will change with January’s earnings call, where Apple is set to report record “revenue of about $52 billion and diluted earnings per share of about $11.75.” Despite what analysts claim, you bet plenty of customers are flocking Apple stores this holiday season.
That’s not to say Asia part manufacturers aren’t taking the heat. Bloomberg reported that several iPhone part manufacturers are seeing declines on Asia stock markets. A company a part of the iPhone assembly process, Hon Hair Precision, lost 4.7-percent to NT$87.20. The infamous Foxconn dropped 4.7-percent to NT$89.70. In addition, Largan Precision, an iPhone camera lens manufacturer, sank 5.5 percent to NT$741 on Taiwan’s stock index.