How low can Apple go?

In this edition of Investor Beat: Shares of Apple fall in the wake of bad news from a supplier.

By Motley Fool Investor Beat Apr 17, 2013 4:09PM
Shares of Apple (AAPL) had another rough day on Wednesday. Cirrus Logic (CRUS), one of Apple’s key suppliers, warned that revenues would be weaker than expected and cited a “decreased forecast for a high volume product”. So how low will shares of Apple go?  How much of a threat is Samsung (SSNLF)?  Should investors buy Apple? In our lead story on Wednesday's Investor Beat, our analysts discuss the future of Apple.
 
Intel (INTC) reported a decline in first-quarter profits from the same period a year ago.  PC revenue slipped 6% but the company's data center revenue was up 7.5%.  Yahoo’s (YHOO) first-quarter revenue was flat but display advertising dropped 11%.  Bank of America (BAC) quadrupled its quarterly profits but still failed to live up to investor expectations.  And Mattel (MAT) posted big profits thanks to its American Girl and Monster High dolls. In our second segment, a look at four stocks making moves.
 
Google (GOOG) reports earnings on Friday. Will the tech giant and Android continue to gain market share in mobile?  And will Chipotle (CMG) serve up any surprises when it reports earnings?  Our analysts explain why they’re watching Google and Chipotle.
The Motley Fool’s 12 top stocks for 2013 are now available! So if you’re tired of picking stocks out of a hat and hoping that one skyrockets, check out Stocks 2013: The Investor’s Guide to the Year Ahead. It’s The Motley Fool’s current top report, and includes Chief Investment Officer Andy Cross’s TOP STOCK FOR 2013! This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how YOU can take advantage of this unseen company’s huge profits in this special, 100% FREE report, just click here now.
5Comments
Apr 17, 2013 5:29PM
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The reasons Apples stock got so high was because of analyst predicted large future growth and profits. This has been a simple market correction as people realize that a company that size cannot grow at 10% a year for the next 50 years. Yes, Apple (Foxconn) produces valuable devices that people want. Do they need a new phone or Mp 3 player every year? probably not. Have there been significant changes in each years new IPhone and IPad? not really. How far can it go? probably not much lower than $200 based on their P/E ratio
Apr 18, 2013 7:31AM
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"Cash is going to be the king!"

 

You were doing okay up to the "cash" thing. Not. Fiat money is everywhere. Expect it to cause new problems as mongers accumulate it but not use it as currency. It's far more likely that we'll call the Dollar for all the bogus ways it has been abused and issue a new currency that actually circulates. You won't get it in equivalency, that's for sure.

Apr 18, 2013 7:26AM
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As we go into this inevitable Great Depression, electronic devices will be anchors dragging you down. Work that pays and jobs that stay won't be technology or need it. Basically, if you can't do without your handheld device, you won't eat. The same people that insisted "Globalization" was the way, also made electronic devices more popular than they needed to be.
Apr 18, 2013 12:32AM
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Apple can go very low along with the rest of the stocks! Deflation is not going to pick and chose losers!

Yes, inflation is low and we can even have deflation soon! Yes, despite all the money printing, deflation can show it's ugly head. Google for IS DEFLATION POSSIBLE IN KONDRATIEFF WAVE to understand why it is very likely to happen! There is nowhere to hide, there is nowhere to diversify! Cash is going to be the king!

Apr 17, 2013 7:28PM
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How low can AAPL go? I forecast two years ago the Gadget Emporium was headed, with or without Mr. Jobs, within three years, to a price range of between $350 and $375.

 

So far, so good . . ..

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