Apple Shares Drop Because Of Downgrades….”The Steve” Offers Sage Advice

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

“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.

One Response to “Apple Shares Drop Because Of Downgrades….”The Steve” Offers Sage Advice”

  1. I’ve been reading quite a bit about this “slow down due to Consumer confidence” Life Ionizers had the Internet Sales today ever; Consumer confidence in my experience and according to history is really a change in consumer interest. History shows us that in Low Market periods (including the great depression) spending rose in many areas (entertainment, health, advertising etc). So the Apple drop, the Google drop and the Amazon drop are all fleeting figments of panic, and just like a few weeks ago, Google, Apple and Amazon will all climb back to their original positions.

    So while this panic is going on, I’m going to drink some alkaline water, download some music to my iPhone and go see a movie, just like most of America is doing tonight.

    by the way, great layout…

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