Consumer Electronics

Goldman Sachs Cores Apple (AAPL)

Many investors and traders alike have been hoping that Apple Inc. (NASDAQ: AAPL) would be largely immune or at least a little shielded from the horrible consumer trends.  It looks like Goldman Sachs is now joining the ranks of analysts who believe this is not the real case.

Goldman Sachs downgraded Apple to a Neutral rating from a Buy rating. Goldman Sachs even noted the concerns about consumer spending in the seasonally softer first half of 2009 and noted Apple’s valuation is at a premium.

The research report also noted that shipments of MacBooks, iPod Nanos, and iPhone were all slightly lower than expected going into the quarter.  The note that Apple is likely to face a tougher environment in the March-2009 and June-2009 quarters as consumer demand falls over yet again is also hard not to notice.

Goldman took the new target down to $115.00 and lowered earnings estimates down to $4.75 EPS for 2009.

Shares are holding up better than many might think with Goldman Sachs throwing in the towel.  Shares are down less than 2% pre-market at $96.40.

Jon C. Ogg
December 15, 2008

ALERT: Today Could Be Your Best Shot At Early Retirement (Sponsored)

If you want to retire before 65, pay attention. Study after study has shown that the longer you stay invested, the better your chances at an early retirement.

Every day that goes by without saving and investing for tomorrow means more to earn and save later. Don’t waste any more time and get started with Robinhood today. The app makes it easy to buy and sell stocks, mutual funds, trade options, and even cryptocurrencies.

Sign up today — click here to start your journey.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.