The IT Nerd

It seems that Apple has joined RIM in having their share values drop. In the case of Apple, their shares dropped after downgrades from Morgan Stanley and RBC Capital Markets. As I write this, their shares are down about 17%. As for the reason for the downgrade, let Kathryn Huberty of Morgan Stanley explain:

“We worry that consensus estimates have not been revised down to reflect slowing global consumer demand and that a broadly positive investment bias … limits upside to (Apple) shares over the next three to six months,”

But “The Steve” was quick to reassure fanbois, employees and investors in a private e-mail, which was promptly leaked to AppleInsider.com:

“As you can see, we have outperformed many other blue-chip tech companies, including Google,” he wrote, tacking on a stock performance comparison chart for illustration. “I continue to believe that our fundamentals – our remarkable people, our clear and focused strategy, our new product pipeline, our 200+ retail stores, our $18 billion of cash in the bank with no debt, etc., will serve us well in the coming months and years.”

He closed with this statement:

“I believe that investors who stay with us will be rewarded as the market’s confidence is restored over time,” he wrote. “Hang in there.”

We’ll see if the street agrees.

This entry was posted on September 29, 2008 at 1:09 pm and is filed under Commentary with tags Apple. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.