A 20 percent decline in share price in less than two months has everyone talking about Apple Inc. (NASDAQ:AAPL). Analysts from every investment firm are coming up with their own forecasts of the stock and making lists of what’s wrong with it. Jeffrey Gundlach is one guru who recently predicted that the stock would drop all the way down to $425 a share by next year.
This doom and gloom assessment of Apple Inc. (NASDAQ:AAPL)'s stock comes on the heels of big gains for the tech giant’s shares. In August Apple Inc. (NASDAQ:AAPL) set a new record for largest market cap, as it seemed like the stock just kept on soaring. But has the Apple bubble finally burst? And if so, is it permanent?
Forbes contributor David Wismer collected the experts’ thoughts on Apple and bundled them up into a nice, neat little package. One tidbit he noted from comments Karen Finerman made last night on CNBC’s “Fast Money” was the fact that many people seem to be getting Apple the Company mixed up with Apple the Stock. The two are different things, although what Apple the Company does can and will have an effect on Apple the Stock.
Wismer’s article is definitely worth a read because he does such a great job of pulling together input from numerous financial experts about Apple the Stock. He also adds in his own input at the end, reminding readers that shares of Apple Inc. (NASDAQ:AAPL) were trading between $430 and $440 in January. He says it seems “somewhat logical” for the stock to continue heading to that price range if the overall market should pull back significantly. Wismer also draws us back to Gundlach’s expectations that Apple is heading down to $425 a share.
But amidst all the backlash Apple Inc. (NASDAQ:AAPL)'s stock has received in recent weeks, there are some bright points to remember. Aaron Task of Yahoo! Finance says that the company remains in a good position. iPhone 5 sales are expected to be at least 45 million for the fourth quarter, and many analysts are saying that Apple Inc. (NASDAQ:AAPL) appears to be out of the woods with its supply issues. iPad sales were up in the millions just three days after the launch of the iPad Mini, and at the end of September, the company’s balance sheet listed more than $176 billion in assets. Task goes on to say that when the popular media begins to vilify a company, it usually means that we’re seeing the end of a decline, so his position on Apple seems to differ from Wismer’s take on it.
So what’s really going on with Apple Inc. (NASDAQ:AAPL) stock? Right now all we can do is wait and see.