Analyst: Apple Will Work Its Magic Tomorrow
With Apple (NASDAQ:AAPL) having fallen a little under 30 percent since reaching a closing high of $702.10 in mid-September, it’s been a tumultuous three months for the iPhone maker’s stock. But as the company gets set to announce its fiscal first-quarter earnings on Wednesday, hope has begun glimmering faintly.
According to Deutsche Bank analyst Chris Whitmore, on Wednesday, Apple could work its “magic” and turn the negative sentiment surrounding the company’s stock around.
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“The news cycle on Apple has turned decidedly negative following the iPhone 5 launch, the Maps snafu, traction from competitors in the 5-inch and 6-inch Android space, and general perception from the media that Apple has lost its mojo,” Whitmore wrote in a note to clients, according to AppleInsider. “Apple needs to change the tone of the conversation.”
Cocerns regarding iPhone sales were “overblown,” according to the analyst, who added that his own checks with carriers had found iPhone 5 demand remained healthy. But Apple will possibly make the state of iPhone demand this year a focal point of the post-earnings conference call, taking charge and “reinvigorate[ing] excitement among investors.”
While Whitmore did not expect to hear anything vis-à-vis Apple’s product roadmap on Wednesday, he believed growth outlook would certainly look up sooner rather than later. “Although we don’t expect Apple to comment on new products in conjunction with its earnings release, we believe new products (iPhone segmentation, iPad mini with Retina display, refreshed iPad, and an Apple TV) are on the horizon, which should improve Apple’s growth outlook,” he wrote.
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Apple is also under pressure to announce a standout quarter because it has missed analyst estimates in the last two consecutive quarters.
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