This week, a debate has been raging amongst analysts and pundits alike over whether Apple (NASDAQ:AAPL) is a fundamentally good stock, whether its shares are are turning the corner and heading up for good, and whether the iPhone is a strong enough growth driver. As shares ended Tuesday in the red, it seems the Apple bears are dominating the discussion, at least for now. Apple shares lost $9.44, or 2.16 percent, to close at $428.43. Here’s a cheat sheet to today’s top Apple stories:
The iPhone 5S May Not Be Enough?
The iPhone 5S and iPhone 6 may not be enough to solve Apple’s problems, wrote Jefferies analyst Peter Misek in a research note aimed at expressing his concerns with continued weakness in Apple’s iPhone suppliers. Misek cut his estimate for both first-quarter iPhone sales and the company’s total revenues for the three-month period. Alongside those diminished expectations, he lowered his price target on Apple’s shares from $500 to $420. The only thing he did not slash was his firm’s investment rating on the stock, which he left at Hold.
Contributing to the analyst’s fears are his latest round of supplier checks, which brought to light to several problems for Apple.
In Misek’s estimation, the upcoming devices from Apple may not be enough to change the iPhone maker’s fortunes. “The phones could have fingerprint technology and we believe Apple is trying to move the iPhone 6 launch to CQ1 to stop the hemorrhaging to phablets…” (Read more.)