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Apple investors hurting, but rest of market shrugs

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Source: USA TODAY

Apple investors are suffering a massive hit Tuesday following disappointing iPhone sales, but troubles at the gadget maker aren’t infecting the rest of the market.

The crash in Apple’s shares is enough to get investors to look away from their smartphone screens: Shares are down $44 a share, or 8%, to $506 a share in late-day trading. Investors in Apple have suffered a nearly $40 billion loss of paper value, which exceeds the market value of entire companies including Target, Viacom and Deere, separately.

So far, though, Apple’s disappointing quarter and lackluster outlook is an Apple problem and not spilling out to the rest of the market. That’s a bit of a relief for investors since Apple accounts for roughly 5% of the total earnings hauled in by Standard & Poor’s 500 companies. And with a market value north of $450 billion, Apple remains the most valuable company in world and has a big weighting on the value of indexes ranging from the S&P 500 to the Nasdaq.

The tech-heavy Nasdaq composite index is up 9.89 to 4093. The broader S&P 500 is up 10.57 points to 1792.13.

Investors are so far seeing the problems being unique to Apple. William Power, analyst at Baird, cut his price target on Apple and lowered his forecast for the company’s profit in the current quarter and the fiscal year. Apple’s profit will likely be $42.3 billion during the quarter, Power says, down 2% from his earlier forecast.

Copyright © 2014 USA TODAY, a division of Gannett Co. Inc.


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