What happened ended to Apple?

[jimbo320 10]

Quite a slide, from the highs to today's close at 525.

What's happened to the stock market darling?

[Vinayak 10]

Apple has been having a tough time after traders reacted to the bad news that it has cut orders for iPhone parts. This obviously signifies decreased demand and so traders have decided to exit their positions on the stock or look to short it which driven it down further. So low in fact that it is touching the $500 mark.

While this does not bode well at all for the Cupertino, CA based firm, the bulls have contented that is a long term support level for the stock and now is the time to buy shares of the world's most valuable company. Price targets of a lot of Wall Street sell side firms is still in the $700ish region.

[Vinayak 10]

I made a giant post on AAPL on my 'tech picks.." thread and you should check it out to see why you want to keep your eyes on AAPL all day long!.

 

I do this for a living by the way, so heed my words!

[Vinayak 10]

Sounds like I will have to eat my words. Never expected this, but I am no sore loser. Here is my latest take: http://www.traderslaboratory.com/forums/stock-trading-laboratory/15256-tech-picks-valley-trader-4.html#post178540

[Vinayak 10]

Apple, Inc. Earnings Report - Tuesday, April 23

 

Apple Inc. AAPL has been hammered on Bloomberg/CNBC and by Wall Street analysts. The main theme has to do with how the large cap tech stock has basically lost its edge. It is hard to fathom now how AAPL was actually trading above $705.00 in September 2012. All of those analysts who believed the stock would hit a $1000 have been given a big time reality check with AAPL at a two-week low of $390.53 on April 19, 2013.

 

At this share price, investors are fairly tentative with many arguing that is still Apple bargain for a value investor given the stock's immense potential still. There are also those that hold the view that this could be the start of a new downtrend below the $400.00 level.

From the way I see things (and most stock analysts would agree), the business landscape for Apple has become much more competitive. “Android”-powered devices now make a large part of the smart phone market.

 

Nonetheless, I want to state here that the Apple iPad is much better than the Samsung Galaxy and I could say the same about the smart phone comparison.

 

The bottom line is that I need to see something truly convincing from the earnings report tomorrow before I decide to buy the stock. One of the figures to keep an eye on is the EPS and if the value turns out to be higher than the consensus EPS forecast of $10.18, this is an encouraging sign for AAPL bulls. Otherwise I am going to think that it is a good short idea.