Apple shares drop 3% on analyst downgrade; iWatch and mobile payments cited

Apple shares drop 3% on analyst downgrade; iWatch and mobile payments cited
Apple stockholders have enjoyed a recent run up in the shares to a new all-time high (taking into account the 7 for 1 stock split that took place earlier this year). But those riding the stock higher, have run into a little hiccup after an analyst downgraded the stock on Wednesday. Pacific Crest analyst Andy Hargreaves is recommending that Apple stockholders sell their shares.

What has turned Hargreaves bearish on the tech titan is the speculation that Apple will enter the mobile payments arena with the Apple iPhone 6, and the strong possibility that Apple will soon unveil a wearable product. The analyst believes that mobile payments and the long-rumored Apple iWatch will not add enough pop to the bottom line.  For a company the size of Apple, the profits generated by entering the mobile payments business, and from selling a wearable device, are "not meaningful" in the "near to medium term."

Pacific Crest still has Apple rated "Outperform," with Hargreaves expecting the Apple iPhone 6 to prop up the stock. In fact, despite telling clients to take profits in the stock, he also suggests that investors hold on to some Apple shares, at least through the September 9th event at which the iPhone 6 and the wearable device are both expected to be unveiled.


Not all of Wall Street is down on Apple. On Tuesday, Piper Jaffray's Gene Munster raised his target on the stock to $120. Apple is currently trading at $99.10, down over 3% on the day.

source: BusinessInsider

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28 Comments

1. 0xFFFF

Posts: 3806; Member since: Apr 16, 2014

The usual playing around with Apple stock prices before big announcements. The Wall Street big boys are getting ready to make some money.

4. Ashoaib

Posts: 3271; Member since: Nov 15, 2013

a big hit by note 4 with full force

16. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

That was my thought as well. The Note 4 has set serious competition for the iToyXL. If the XL doesn't ship in October when the Note 4 ships in volume, it will have a tough task to make up the lost sales.

24. joaolx

Posts: 364; Member since: Aug 16, 2011

I laughed all the way through the Note 4 announcement. It's still a great phone but the amount of new features is even less than last year Note 3 and that was a dissapointment. But after the S5 I made sure my expectations were even lower. Still great and I would recommend it but it won't affect the iPhone sales which I'm sure will come to the market sooner than October.

27. superduper

Posts: 151; Member since: Oct 20, 2013

Good point. The Note 4 is heavier and larger than the Note 3, and substantially heavier and larger than any iPhone in recent history.

7. jaytai0106

Posts: 1888; Member since: Mar 30, 2011

Apple will need to bring their A game this year or that stock might slide down a little bit more.

18. TruthSpeaker unregistered

The markets/analysts talk it up and down, an the muppets follow.

2. kentas

Posts: 11; Member since: Jul 06, 2014

The biggest problem here is stupid people. Stop using same and weak password like: password1234 and etc... for all websites, accounts (facepalm)

5. PapaSmurf

Posts: 10457; Member since: May 14, 2012

?????

11. kentas

Posts: 11; Member since: Jul 06, 2014

Stocks dropped because of iCloud security "breach"... however the problem appeared thanks to people who didn't take attention to their security by using weak passwords. If you put naked photos please atleast make stronger password....

14. NokiaFTW

Posts: 2072; Member since: Oct 24, 2012

Huge and world renown celebs shouldn't even be uploading nude pics of themselves on any cloud or internet service, no matter how "safe" it may be. It was stupid on JLaw's or Kate Upton's part to upload any of their sensitive pictures to iCloud knowing their popularity. They were basically asking for it to be leaked,

19. androiphone20

Posts: 1654; Member since: Jul 10, 2013

Apparently, it wasn't anyone's fault but the hacker's. Anyone, including JLaw is entitled to their own privacy, uploading them to the cloud included.

21. androiphone20

Posts: 1654; Member since: Jul 10, 2013

Man, your post sounds sexist as f**k

23. hltechie unregistered

I know this has nothing to do with this thread but your profile pic is awesome NokiaFTW!

3. Ninetysix

Posts: 2962; Member since: Oct 08, 2012

RIP Apple! Market cap down to 611B.

6. PapaSmurf

Posts: 10457; Member since: May 14, 2012

lolrite

9. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

Why not 30% instead of 3%.

25. Ashoaib

Posts: 3271; Member since: Nov 15, 2013

30% will be really great... but they will surely bring law suits against each and every single human being

8. SIGPRO

Posts: 2815; Member since: Oct 03, 2012

Apple sucks! Iphone 6 prices are too high! Minor upgrades and high price for a midrange phone!

10. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

Well said and agree.

13. power_x

Posts: 264; Member since: Aug 28, 2013

Go away troll

15. Arte-8800

Posts: 4562; Member since: Mar 13, 2014

Go away iZ●mbi €

28. stealthd unregistered

I like how you're complaining a phone that hasn't been announced yet. These imaginary prices are too high!

12. kindlefireowner

Posts: 504; Member since: Dec 05, 2011

Wow my Apple stock dropped today. Looks like I'm going to the poor house on this Apple stock long term. Nobody makes money on Apple stock. What was I thinking? Thinking? $$$$

17. ryq24

Posts: 875; Member since: Oct 17, 2011

The recent leak of nude photos of celebrity believe to be from iCloud may contribute to this fall.

20. NexusPhan

Posts: 632; Member since: Jul 11, 2013

That probably would have happened yesterday if that was the case tho right?

22. Salazzi

Posts: 537; Member since: Feb 17, 2014

no it wouldn't because it was discovered it was not a flaw in iCloud, but rather brute force password cracks (meaning they had to know the celebs email used and then use brute force to crack the password). All would have been avoided had they used Apples 2-step verification and what not.

26. Ashoaib

Posts: 3271; Member since: Nov 15, 2013

apple's securities are always flawed... why they were using icould at the first instance? they should not use anything apple

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