AAPL (Apple Computer) hits $400

May 26, 2010 5:46 am
Filed Under: News

Apple tumbled to its lowest level in over a year, as investors continued to dump shares of the tech company amid worries over second-quarter iPad mini shipments.

The once-darling tech giant of Wall Street shed nearly 6 percent Wednesday, briefly breaking below $400 a share for the first time since December 2011, following a report from DigiTimes that iPad mini shipments could fall 20 percent to 30 percent quarter-over-quarter, to 10 million to 12 million in the June quarter, because of “lacking demand in the market.”

“We continue to see risks to [Apple's] consensus estimates, primarily with respect to the June quarter,” wrote Edward Parker of Lazard Capital Markets. “June should be the trough quarter ahead of multiple new product introductions into this summer and into fall.”

Brian White, Managing Director & Senior Analyst for IT Hardware, Networking & Tech Supply Chain at Topeka Capital Markets says Apple’s stock is going through a bottoming process. He thinks the opening up of new market opportunities will help propel Apple’s stock higher.

Adding to worries, Apple supplier Cirrus Logic plunged nearly 15 percent after the audio chipmaker estimated fourth-quarter revenue below Wall Street projections, and first-quarter revenue forecast also fell short of expectations