Apple’s Growth Slows, Stock Falls Below $400
Provided by Business Insider's Jay Yarow
The market's reaction to Apple's earnings is not good.
The stock is down 3% this morning, pre-market, sending
to $393.
This drop is actually worse than it sounds.
Related: Apple Shares Slump Below $400 But This Isn't Microsoft, Ritholtz Says
After earnings were released, Apple was up as much as 5% after-hours. But when people digested the report, and listened to Tim Cook on the
call, it started crumbling.
Investors are coming to grips with the fact that the once high-flying company is grinding to a halt.
Instead of being a story of hyper-growth, it's now a cash cow.
Apple says it has new products in the works, but they're not coming until the Fall.
Related: Apple Gearing Up To Launch New iPhone (Yawn)
Even when those new products hit, they're not going to be as lucrative or successful as the iPhone.
Because Apple generates so much money, a return to big growth is nearly impossible.
So, now you have a company that is neither here, nor there. It's not a safe bet because technology is unpredictable, and this management team has not proven an ability to produce visionary products. It's not a high growth tech company either.
Throw in the fact that Apple issued really soft guidance, which is sending analysts scrambling to readjust their models, and it's not going to be easy for the
to bounce back today.
Watch the accompanying video to hear The Daily Ticker's Aaron Task and Henry Blodget discuss Apple's latest earnings report. While Apple may be slowing, Blodget still likes the stock and has faith in the tech company.
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