Apple Stock on NASDAQ Slides Following Stock Downgrade, Investor Sell Off

Apple’s shares (NASDAQ:AAPL) today on the NASDAQ index are continuing to lose significant value as downward pressure is put on the stock following massive investor selloff of the stock, after analysts downgraded the stock for the first time since October 2010.

Alex Guana, a JMP Securities analyst covering Apple today downgraded his rating on the tech giant to “market perform”, from “outperform”, citing an increase in earnings volatility as Apple’s Chinese manufacturer partner, Foxconn, faces stagnant sales growth.

 The analyst also cited the Japan earthquake and tsunami crisis as a risk factor in the short-term. Apple also delayed the launch of the iPad 2 in Japan due to the crisis.

With about fifteen minutes remaining in today’s trading session, Apple is trading down nearly $14 per share, or about 4-percent, to $331.3 per share.

Analyst consensus is that the Apple stock is currently undervalued by about 25 to 35-percent, pegging the stock value at about $440 per share over the next year.

The Apple stock reached a low of $326.38 in intraday trading at about 2PM.

Over the last couple of months, the Apple stock experienced significant volatility, after reaching $363 per share, subsequently sliding down to $338 per share, and back up to $360 per share, only about a week later reaching today’s slide.

Despite the iPad 2 not having a higher resolution display like the iPhone 4, having lower than expected RAM, only a VGA resolution front-facing camera, Apple still said sales were “amazing”, and the product currently remains sold out in Apple stores, with Internet purchases expected to ship in 3 to 4 weeks.

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Peggy holds a Bachelor Arts degree with honors in Economics from York University in Toronto, Canada. She is a Certified Management Accountant (CMA). She has also passed Level I of the Chartered Financial Analyst (CFA) Program. She is also a realtor. Write to [email protected]
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  • Andyle604

    It appears that the earthquake in Japan is having an effect on all markets.

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