Market Takes a Bite Out of Apple
Wednesday, January 23rd, 2008
No doubt about it - when investors think technology, high growth, and innovation - one of the first companies that comes to mind is Apple Inc. (NASDAQ: AAPL). However, despite quarterly earnings that beat analyst estimates, shares of the tech giant shed about 12% in after hours trading yesterday. Per Reuters, the selloff came in response to lowered Q2 earnings guidance by the company of $6.8 billion vs. Wall Street’s expectations of $7 billion.
Recession Fears
Was the selloff justified? Maybe, maybe not. However, with fears that a recession is rapidly descending on the US economy, it does appear that investors are betting on a decrease in personal consumption and exiting this stock. Even so, this is still a stellar company and I believe it will continue to take market share in the personal computer space moving forward.
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