Home » FINANCE » Why Apple Inc Stock Downfall Prediction at $60 is Wrong?
(140909) -- CUPERTINO, Sept. 9, 2014 (Xinhua) -- Apple Vice President Phil Schiller introduces the new products during an Apple special event in Cupertino, California, the United States, on Sept. 9, 2014. (Xinhua)

Why Apple Inc Stock Downfall Prediction at $60 is Wrong?

Apple Inc (AAPL) stock will plummet by 50%, according to Berenberg, a German investment bank citing the Cupertino-based tech giant’s over-dependence on iPhone alone with no other product to supplement the iPhone’s presence in the market.

Apple Insider described the prediction more of a statement than a plausible estimate as it is too “extreme” to iamgine.

According to Apple Insider, the German firm’s price target is so “extreme” that it doesn’t appear to be plausible prediction but more of a statement about Apple stock that is trading at $128 as of February 26, when the stock reached its lowest to $126.

Irrespective of the prediction made by Berenberg analyst Adnaan Ahmad who cited the “law of large numbers” may sweep in to replace accelerated cycle in iPhone sales volume turning the product into negative growth in sales.

appleEssentially, he undermines the potential of the upcoming Apple Watch release on March 9 that is bound to catch up with any slowdown witnessed in the last three months. In fact, sluggishness is not Apple’s mantra and it fights back everyday like a new startup, the way it was envisioned by late steve Jobs.

Within days after the prediction, Apple stock went up to $129 range and as of Tuesday morning, when the story was being published, the stock of Apple was high at $129.09. The analyst said Apple should buy electric car maker Tesla instead of starting anew.

Contrary to Ahmad’s contention, Apple has attracted huge hedge funders’ attention in the month and Goldman Sachs seconded Apple as one stock that is poised to influence many money managers in 2015 due to its highest percentage of hedge fund equity assets in in the last 2 years.

Bloomberg who surveyed 44 analysts, confirmed the stock would increase by 2% in the next 12 months and Goldman Sachs turned more bullish setting a stock price target of $145 per share. With $18 billion in profits last quarter, nobody can predict such a downfall unless skewed by miscalculation and planted research forecast.

In all, Apple’s every move is bound to push the stock price up by 2 to 5% and its Apple Watch may take centre-stage this year, followed by Apple’s foray into electric driver-less car manufacturing in a couple of years from now.

If a small iPhone could be packed so efficiently by steve Jobs, can’t Tim cook make a bigger-sized car more useful to suit future aspirations of the the youth?

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