Apple stock price is predicted to settle at $240, around half of its value today. US stock market is set to be affected by continuous fall of Apple shares. But then Googleâ€™s rising stock will offset the loss
iPad Mini demand is falling sharply in recent weeks. Even Pegatron, an Apple manufacturer partner has predicted that the demand for the smaller tablet from Cupertino based Apple will go down substantially in this quarter. This falling demand for iPad Mini is going to further hammer Appleâ€™s stocks and there may be substantial fall in Appleâ€™s stock price in the coming days.
Appleâ€™s stock price is going down and down and now a leading market analyst David Trainer has said that the right price for Apple share right now is $240, just over half of Appleâ€™s stock value right now. This must come as very surprising for people who have been fed on the rumors that Apple stocks were worth $1000 or even more merely a few months ago. Now the very same people who prompted many others to go for Apple stocks even when they were at their peak of $700 are hiding themselves from the people who heeded their advice.
But now things are looking very disappointing to Apple investors who invested huge amounts of money on buying Apple stocks. They have lost very heavily indeed. Meanwhile David Trainer who is the president of New Constructs, research firm has predicted that Apple will shell around half of its value and will tread at about $240 per share. David Trainer says, â€œâ€¦Apple Inc.â€™s level of profitability is not sustainable, and that the companyâ€™s return on invested capital suggests that the price of the stock should be somewhere around $240. That would be nearly a 50% decline from current levelsâ€.
Apple is not the same company that ruled the smartphone and tablet market till mid-last year. Now Samsung is far ahead of Apple in terms of smart-phone sales. Even in the US market that was the fiefdom of Apple, Sammy has been able to penetrate significantly to challenge Apple like never before. Though the profit margin of Samsung on each handset sold may not be what Apple earns from sale of one iPhone or one iPad, nonetheless the huge sales are offsetting any difference in the two companiesâ€™ revenue.
Now hedge funds are leaving Apple. David Tepper, founder and chief investment officer at Appaloosa Management seems to be no more interested in Apple. He has made many corrections in investments by his company and his most important major strategy shifts in the first quarter has been to reduce his Apple stake by as much as 41 percent. A report suggests that Tepper’s Appaloosa firm has roughly $18 billion under management. To be true, there are other hedge funds and investors who are leaving Apple one by one. No one wants to stick with a sinking ship.