Apple Shares Slump Below $400 But This Isn’t Microsoft, Ritholtz Says
By Morgan Korn
Excerpt:
Barry Ritholtz, CEO of Fusion IQ and author of The Big Picture blog, has been ringing the alarm bells about Apple stock for months. A self-described Apple fanboy, Ritholtz was warning that Apple could fall below $500 a share late last November (the stock was trading in the $571 range at the time) and has since lowered his forecast to $350 a share. Last October, Ritholtz started to unwind his clients’ positions in the tech giant, cutting their exposure by at least a third.
Ritholtz says the stock could may fall further from here but does not believe the end of Apple is near.
“You cannot grow 20, 30 percent as a hardware company forever,” he says in the accompanying clip. “Apple is transitioning from a growth stock to a value stock.”
Increased competition has forced Apple to grow at a “reasonable instead of insane” rate, Ritholz adds, but that could change once the company establishes a foothold in China. Most importantly, consumers have not given up on Apple.
Apple “makes really good products that people like a lot,” he says. “And they will be continue to be innovative.”
Full article: Apple Shares Slump Below $400 But This Isn’t Microsoft, Ritholtz Says | Daily Ticker – Yahoo! Finance.
