Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and 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
Play HSBC's Stephen King warns of 'enormous' Brexit deficit danger

HSBC's Stephen King warns of 'enormous' Brexit deficit danger

Brexit will weaken the economy, fail to boost exports and lessen the country's ability to fund its 'enormous' deficit, according to HSBC's senior economic adviser Stephen King.

Play Premier's Smith: electricity and water can be a good mix

Premier's Smith: electricity and water can be a good mix

Exposing your person to electricity and water simultaneously is ill-advised, but what about your portfolio?

Play Citywire 10k: video highlights

Citywire 10k: video highlights

Citywire held its sixth annual charity run last week, which hosted over 200 people and raised £14,000. Here are the video highlights.

Your Business: Cover Star Club

Profile: gearing up for the shift from consolidation to start-ups

Profile: gearing up for the shift from consolidation to start-ups

‘I think the industry is evolving rapidly, but not necessarily as a whole,’ says the head of recently launched Charles Nicholson AM

Wealth Manager on Twitter