Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Falling Apple's 10% crash threatens tech party

Falling Apple's 10% crash threatens tech party

Apple shares fell 10% in afterhours trading last night, threatening to throw a spoke in the recent tech market rally, as its breakneck rate of sales growth faltered at the end of 2012.

Shares in the business gave up around $50 billion as investors began to question whether its period of maximum expansion. Apple stock has fallen from a peak of $702 in September to $461.31.

The company sold a record 47.8 million iPhones over the last quarter of 2012. While 29% up on 2012 that nonetheless disappointed market expectations the company would break through 50 million.

Similarly, while revenue grew 18% over the quarter to $54.5 billion, that nonetheless came below expectation of $54.73 billion, marking the third consecutive quarter that Apple has missed forecasts.  

The slide in Apple’s valuation since September has been a source of fascination to US analyst Bespoke Investment, which this month pointed out there is now spread of more than 30% between the share price and median price target.

Over the last quarter the shares are now lagging by a wide measure the price gain of Facebook – which admittedly started from a much lower valuation.

Apple is now trading at a trailing multiple of 11.64 times price to earnings.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
1 Comment Play Citywire Scotland: how wealth managers use new tech

Citywire Scotland: how wealth managers use new tech

We caught up with a few wealth managers at our annual event in Gleneagles to find out what technological innovations they are employing across their businesses.

1 Comment Play CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

CEO Tapes: Buxton to Gilbert - ‘my Glencore quandary’

Do not miss the first two minutes of this film as Richard Buxton shares how he has been challenged by a client for owning shares in a certain company.

Play CEO Tapes: the huge opportunities for asset managers

CEO Tapes: the huge opportunities for asset managers

From tech disruption, retirement and poaching, the CEO discuss the opportunities for their businesses in this episode.

Read More
Wealth Manager on Twitter