Apple: More blood ahead in premarket trading

Meanwhile, Deutsche Bank has cut its Apple price target to $295 from $305.

From MarketWatch:

Apple could see a hit of nearly $5 billion due to COVID-19’s spread in China, but signs point to supply issues easing next month, according to analysts at Deutsch Bank. In a note Thursday afternoon, analysts reduced their estimate for Apple’s fiscal second quarter, which now stand at earnings of $2.69 a share on sales of $60.4 billion, down from $2.99 a share on sales of $65.1 billion. The reduction was due to the effects of the new coronavirus spreading through China and the resulting inaction in an important country for Apple’s manufacturing and sales, but analysts said that reports from iPhone manufacturer Foxconn Technology Co. Ltd. suggest effects should decline after March.

My take: Fasten your seatbelts.

10 Comments

  1. Jerry Doyle said:
    “…. My take: Fasten your seatbelts.”

    Agree! We surely will be testing new market lows in the coming days and perhaps weeks. So much still is unknown about this virus. By paramount concern is over the question does it get better following treatment only to lie dormant and manifest itself once again in the human body, flaring up?

    I heard an experience investor say on CNBC yesterday that if you have a stock whose fundamentals you know are sound during these periods then you should be ever deeper in love with that stock. What he means is that you now have a propitious opportunity to buy even more shares at a bargain.

    1
    March 6, 2020
  2. Gregg Thurman said:
    There’s blood on my ledger.

    I upgraded very good Spreads because they were over $20 in-the-money. The new spreads – $287.50/$290.00 – (with the pre-market crash) are going to expire worthless (or nearly so).

    0
    March 6, 2020
  3. Fred Stein said:
    Here we go again. Analysts chase the stock lower.. until the stock reverses and then they reverse again.

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    March 6, 2020
  4. Kirk DeBernardi said:
    I’m an optimist, not a pessimist, yet I’m mentally writing off this entire year for any promising gains in AAPL.

    2019 was historically such a powerfully firm run-up year for AAPL it could be construed as the beginning of the death knell of the “Apple is doomed” meme with AAPL finally gaining the respect in the market it’s continuing performance and vision has long demanded.

    Proposing that the entirety of 2020 will end up a standstill, supplants panic and fear (never good investing emotions) with a more healthy wait-and-see patience obviated by the fact that, from this viewpoint, no one knows how things will fair out in the near term.

    It’s a tortoise v hare mentality. Patience wins.

    1
    March 6, 2020
  5. Aaron Belich said:
    Watch out, dead cat falling!

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    March 6, 2020
  6. John Konopka said:
    Volumes are high but have been trending down the last few days. It seems that the market is driven by algorithms or index funds, not individual company performance. In the stocks app I look down the list of charts and they are all virtually the same. I guess this means trades are based on fear. It may take a month or two for things to settle.

    0
    March 6, 2020

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