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If cutting Apple (AAPL) targets is an Olympic sport, Nomura wins the gold, slashing its price...

If cutting Apple (AAPL) targets is an Olympic sport, Nomura wins the gold, slashing its price target to $530 from $660, with the analysts proving they read the paper by citing worries over iPhone sales and gross margins.
Comments (58)
  • Nomura has recently be world champion in cutting price targets of many many companies. Always late and based on gossip.
    15 Jan 2013, 07:54 AM Reply Like
  • Yes, trouble is that gossip can destroy companies and this is happening before our eyes with apple.
    They dont need to provide support to anything they say. Just throw the words to the wind.
    15 Jan 2013, 08:34 AM Reply Like
  • @lucnj: Please, provide one example where gossip destroyed a company.
    15 Jan 2013, 09:06 AM Reply Like
  • Where is Tim Cook on ll of this. His silence is killing the stock.
    15 Jan 2013, 11:02 AM Reply Like
  • He cannot say anything, SEC regulations are preventing him from doing so.
    15 Jan 2013, 11:04 AM Reply Like
  • Minutemen, thank you for your question. I should have said rumors and/or unsubstantiated news instead of gossip because that is what i meant to say.

     

    Maybe i lack sophistication to understand what is going on. Right now the market stopped making sense to me. I have no respect for analysts. Market behavior is not rational.... Today the market will shoot a company stock up to the sky... They love love love it for awhile. Suddenly it falls from grace for whatever reason and they shoot it down.
    15 Jan 2013, 03:01 PM Reply Like
  • lucnj: I completely understand your frustration in watching a stock price tumble. But keep in mind, if you are an investor, i.e., plan to hold onto your stock for years, that you should not pay any attention to the day-to-day fluctuations in share prices. The news, gossip, rumors, analyst estimates are just noise. Invest in what you believe is a sold company and don't worry about how the stock is doing in short term. I know this is easier said that done. Keep in mind also that AAPL is a tech company, and you are going to see more volatility in this sector than in others (no matter what company it is).
    15 Jan 2013, 03:21 PM Reply Like
  • Never never never base your investment decisions on analyst price targets...
    15 Jan 2013, 07:59 AM Reply Like
  • Love the "analysts proving they read the paper" dig at nomura's lower-case olympian athletes.
    15 Jan 2013, 08:00 AM Reply Like
  • they are Japanese after all. Always late to the game. They are usually the last buyers and early sellers.
    15 Jan 2013, 08:03 AM Reply Like
  • Please Do not aleart as for this kind of stuff
    15 Jan 2013, 08:19 AM Reply Like
  • I don't understand what is really going on but once again comes another idiot who apparently does not know left from right and cut Apple estimates.
    This looks more like dog kill dog fight. One dog attacks and all the other dogs joins in just for the heck of it.
    Darn!!! This is really getting sooo old! Tim cook should buy back apple stocks with every single dollar they can afford, after off course allocating handsomely for R&D. If only they had enough Money to privatise apple these idiots would maybe find another company to destroy and give them a breather.
    15 Jan 2013, 08:26 AM Reply Like
  • More like special olympics.
    15 Jan 2013, 09:01 AM Reply Like
  • Nomura is right.
    15 Jan 2013, 09:28 AM Reply Like
  • Bold price target by Nomura. When they initated their coverage with a $630 I remember them getting laughed at here.
    15 Jan 2013, 08:33 AM Reply Like
  • this is too funny...
    15 Jan 2013, 08:37 AM Reply Like
  • Amazing every analyst is late to the party yet no one ever cares. PT of AAPL at 1111.11 still stands with one group.
    15 Jan 2013, 08:41 AM Reply Like
  • Nomuras rationale for downgrade was reported by Jeffries weeks ago. Guess that's why the stocks not tumbling. Late!
    15 Jan 2013, 08:44 AM Reply Like
  • I am a long-term Apple holder, of the old-fashioned variety. I am disappointed in the recent tumble of Apple, of course, but am not convinced it's because of any core deficiencies. I remember when all the corporate clients I had scoffed at Apple. The iPhone changed the playing field for everyone; it's not surprising that there is competition; does Samsung have the better product? Will Blackberry morph into something similar? Will Apple have to play Catch-up with itself?

     

    I feel there will be a leveling of that market but that Apple will continue to broaden their ecosystem's reach.
    15 Jan 2013, 08:46 AM Reply Like
  • Ofcourse, WSJ lost its credibility yesterday after " selling" old news. Ofcourse downgrades would follow. Bunch of fools trying to shine. Nomura is a joke.
    15 Jan 2013, 08:47 AM Reply Like
  • After talking about the japanese guy (who can't speak English) comments that aapl's iphone demand was off by a bunch,
    the LA Times article adds this:

     

    "Like many Apple rumors and stories, however, this latest development was open to different interpretations. Many analysts and independent observers suggested indications that Apple had cut its outlook for the iPhone 5 by as much as half seemed extreme, given recent reports of strong smartphone sales by Verizon Wireless and AT&T.

     

    Wolf, the Needham analyst, suggested an alternative explanation to reports that Apple needed fewer screens. Because the iPhone 5 had a longer screen than prior versions, he said, suppliers at first had a hard time manufacturing them, so Apple had to over-order screens because the rates, or "yields," of acceptable screens out of each batch was low. It's possible manufacturers have become more efficient, producing fewer duds and allowing Apple to reduce its orders for screens."

     

    Another aspect of the screen counts is that assembly breakage has likely gone to zero now that the Foxconn production lines are 100% up the learning curve. Prepare for Tim Cook's revenge on all these #$%$ shorts and naysayers on the 23rd... he's sicker than anyone about the dissing of his leadership, AAPL performance, stock price action and what that means to employee morale, and moving the company forward to the next level. His royal flush of all this is coming next week when the bill for "betting against aapl" comes due. Less
    15 Jan 2013, 09:02 AM Reply Like
  • Thanks for that Dean.. Really tired of all this negativity. The Apple stores here in London, UK are so packed. I have NEVER seen them like this.
    15 Jan 2013, 09:11 AM Reply Like
  • I was in an AAPL store yesterday and couldn't even move... Never seen them like this. I also grabbed a new iPad 4 after finally caving - best piece of technology I've ever owned for sure, way smoother than the Samsung Nexus line.
    15 Jan 2013, 10:22 AM Reply Like
  • Don't forget the "faux" 65 million number that was cut in half, LOL, that the WSJ subsequently removed from their initial article. Even if it were true, 32 million 1phone 5's in fiscal q2 would be a GREAT number!
    15 Jan 2013, 10:45 AM Reply Like
  • If Tim Cook's only weapon against the "#$%$ shorts" is to release great earnings then maybe he does need to go.

     

    With the beating the stock has taken and the ridiculous amount of cash they have, if Apple's leadership believes that the stock is seriously undervalued then they should initiate a buyback level to support the stock. It's what Buffett did when the market decided to sell Berkshire - he reaffirmed the value by committing to buy back below a certain level.

     

    Apple has many tools at their disposal, one being to stop letting the price be whipsawed by non-stop rumours. To have shareholders suffer through the volatility we've seen when the company has the ability to mitigate it does not indicate a shareholder-friendly approach.

     

    For the record I don't think Tim Cook needs to go but I do think Apple needs to SERIOUSLY revisit their approaches on a couple different fronts. Maybe that's what the new CFO will do?
    15 Jan 2013, 10:58 AM Reply Like
  • It's amazing how these rumours get twisted. I actually had someone tell me yesterday's 'fact' about a cut in iphone5 components/ 50% slash in demand had come from Apple. People/analysts are so stupid. Maybe we should play their game and start calling journalists of rumours at Samsung, google..
    15 Jan 2013, 09:04 AM Reply Like
  • I don't own any Apple but if all this negative talk drives it down to late 400s this week I might buy some.
    15 Jan 2013, 09:07 AM Reply Like
  • No support today....
    15 Jan 2013, 09:35 AM Reply Like
  • Why are so many people here concerned about what the analysts have to say? In the long term it is earnings that set stock prices, not gossip, rumors or analysts. If you are long AAPL and think it is currently undervalued, then either buy more stock or stop yiping and wait awhile.
    15 Jan 2013, 09:36 AM Reply Like
  • Apple is kaput !! Time to move onto something else. The companies management is a mess..
    15 Jan 2013, 09:38 AM Reply Like
  • Yup, apple's going bankrupt...........Dell is going to buy the company, unless I beat them to it.
    15 Jan 2013, 10:09 AM Reply Like
  • I'll be buying in at $475.
    15 Jan 2013, 09:43 AM Reply Like
  • That could be in just a few minutes.
    15 Jan 2013, 09:46 AM Reply Like
  • Sold it at $690 and i won't look back!!
    15 Jan 2013, 09:47 AM Reply Like
  • sure you did mr hindsight
    15 Jan 2013, 10:02 AM Reply Like
  • SHAM

     

    Go look at my past posts..Sorry to bust your bubble. Too much competition, vendors are getting hit hard as well. How often do you really need to add a new phone?

     

    Time is up !
    15 Jan 2013, 10:06 AM Reply Like
  • AAPL has kept the same margins all the way through the PC age, not sure why people think this new era will be any different. There will always be a faster processor, better screen, faster speeds, better graphics to pay a premium for.
    15 Jan 2013, 10:25 AM Reply Like
  • DAN

     

    It is called a recession, unemployment, reigning in spending, etc..

     

    Happening to a ton of companies and Apple is no different..imo.
    15 Jan 2013, 10:29 AM Reply Like
  • Uh huh. How about giving us a heads up in advance of what you're about to do next so we can leverage your impeccable investing skills in our own decision making?
    15 Jan 2013, 11:20 AM Reply Like
  • All the comments from Apple fan boys (and investors) remind me of the days when I was a program director of a Fed. research agency. Initially I will try to explain why I could not fund a specific proposal that would result in too many calls to my boss (trying to overturn the outcome). The boss would tell me, the proposal is their baby and the baby is cute and beautiful regardless of what others say and you do not have to explain any further than what your written review says. And after some experience on the job, I also realized the review process is like "Four blind folks touching and deciding what an elephant is". And this immediate attack on the analyst also makes me think of what the press used to call FOB or friends of Bill Clinton who will go to bat for him as soon as something bad emerged (like Jennifer Flower news). We will know soon which side is right (and it won't be settled in one quarter) since there are good arguments on both sides (not just this article).
    A former fan boy of Apple when it was really a Geek company (remember the Newton or the original Optical Hard drive) which no longer it is.
    15 Jan 2013, 09:47 AM Reply Like
  • having followed these postings for a while, I have seen far more accusations of irrational exuberance than actual irrational exuberance. The stock market is such a pessimistic game, why can bears never be wrong. Why is nay saying advice always seen as wiser and more credible?
    15 Jan 2013, 10:38 AM Reply Like
  • Yes, we will know decisively who is right in one week. And it is the bulls.
    15 Jan 2013, 10:49 AM Reply Like
  • right, now its just the most valuable company in the world.
    15 Jan 2013, 10:03 AM Reply Like
  • As an analyst who pontificates strictly on gut feel I am lowering my estimate to $431.83 by the 4th of July. BTW, bought at that price, sold at $696 so now really trust my gut.
    15 Jan 2013, 10:17 AM Reply Like
  • Oh man, this has got to hurt.
    At this rate Apple won't even bother with an iPhone 6.

     

    Then how will you get up in the morning?
    15 Jan 2013, 10:52 AM Reply Like
  • I'm pretty sure Apple will still be in business in 2014.

     

    Wish I had enough money and pull to wear I could make up news on a company before earnings to tank the stock price, pick up shares, then say I made a mistake when the company beats earnings, and make a boat load of cash.

     

    And do this 4 times a year.
    15 Jan 2013, 11:41 AM Reply Like
  • RycheMykol: It doesn't even require much money. All that you have to do is put out a negative note on the stock and you're from RycheMykol securities and everyone will start selling. 20 analysts can be bullish and 1 bearish and the shares drop on the opinion of the latter.
    16 Jan 2013, 02:04 AM Reply Like
  • Sounds like you just got hired at RycheMykol Securities! You have a very bright future! haha.
    16 Jan 2013, 09:38 AM Reply Like
  • One thing that should be abundantly clear by now is that so-called analysts always have an agenda. Why would a company radically drop its targets just 8 days before earnings? Everyone has figured out that AAPL stock has become hyper-sensitive to any negative news. The stock has given up an enormous amount of value in the last 3 1/2 months on speculation, rumor and supposition. We'll get some hard news next Wednesday when people will either be vindicated in their prognostications or look kind of ridiculous.
    15 Jan 2013, 11:20 AM Reply Like
  • This is just fraud and breech of fiduciary responsibility on the part of Apples Board. The Chairman from Disney should be gone. I realize they are in their blackout now, but this problem didn't start yesterday. This Board is totally incompetent and should face class action suits....period!!
    15 Jan 2013, 11:57 AM Reply Like
  • How is this fraud on Apple's part?
    15 Jan 2013, 12:14 PM Reply Like
  • Companies do what companies do, and stocks do what stocks do.

     

    The people at Apple make high tech things that people want to buy, and the people holding Apple stock sell because they are scared.

     

    Then, there are the "smart" people that take advantage of their scared brethren and manipulate the stock so they can make a ton of money.

     

    I would like to know what the smart people are doing.
    15 Jan 2013, 12:28 PM Reply Like
  • How low does the stock have to go before Apple buys back shares? At this point as a long term investor I'm looking for the stock to continue lower. Let's force the company to do a massive buy back by depressing the stock. Maybe subconsiously this is the objective. The street keeps on beating up the company until they talk...
    15 Jan 2013, 12:46 PM Reply Like
  • "The street keeps on beating up the company until they talk... "

     

    That's an interesting perspective.

     

    It could be that Apple wants to keep to themselves until they actually lauch their next big thing (if it exists). They want to get a head-start on competition before all the me-too's flood the market.
    15 Jan 2013, 01:12 PM Reply Like
  • the street wants two things from Apple, a payoff via a dividend hike and increased intelligence: access to their product development cycle internal sales data etc. It's hard to get accurate sales numbers from China, so you make up a rumor about weak Chinese demand. All of the sudden the company responds to quell the rumor and you walk away with some very valuable numbers without too much effort. Just one example.
    16 Jan 2013, 09:47 AM Reply Like
  • To start off, I am a young investor, and have alot less experience in this area than many of you likely. I am long AAPL call options and consequently am hurting. However, I have made a few simple observations that lead me to believe you have nothing to worry about if you're long apple.
    1. Obviously AAPL has had enormous price drops in the past, in which blowout quarters immediately reversed (iphone 4S release)
    2. AAPL management obviously knows how the company is performing, and obviously sees the stock price. Many people seem annoyed that AAPL management is not correcting the statements being made by every analyst and little reporter out there. I myself believe the bears are planting most of these stories or contorting information to serve their needs. However, AAPL is sitting on 130 billion dollars. Do you think if they knew that their company is out of ideas, and their products werent selling, they would not disperse some of tha cash? Obviously it is not in apples best interests to allow the stock to fall to 400, which is where it's going if they miss this quarter. Apple can easily become a single digit growth company and be 800 a share if they were to disperse some of their cash pile. Imagine the stock response to a 5% dividend, which apple could easily afford. To me, Apple's silence (which has always been their policy) should be considered a positive, because IMO it means they are confident that their results will speak for themselves in the January earnings report and moving forward in 2013. Just think, Tim Cook plans to more than double their retail presence in China, how hard will it be for apple to achieve even a 10% CAGR? Not hard at all.
    15 Jan 2013, 02:59 PM Reply Like
  • exactly. All the pessimistic scenarios share a common premise: the people running Apple must be idiots. They don't develop new products. They ignore valuable segments of the market place; they wouldn't bother supporting the stock with their cash if it was really in trouble . They destroy their own profit margins etc.

     

    Does anyone truly believe history bears this out?
    16 Jan 2013, 09:41 AM Reply Like
  • The way I read it:
    The Investment Firms that are downgrading Apple are the ones that failed to purchase shares, so they issue negative news and downgrades so they can get in cheap.

     

    The Investment Firms that remain neutral or upgrade the stock have a long position or purchased the stock at a higher price than it currently is at and need the price to go up or remain the same.
    16 Jan 2013, 10:33 AM Reply Like
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