Uncertainty is what best describes the share value performance of Apple Inc (NASDAQ:AAPL) and the latest twist in this up-and-down saga was the decline of 1.28% that the stock underwent during Tuesday’s trading session. While no-one knows exactly what might be causing this irregularity, analysts are quick to put forth their opinions and offer their personal interpretation of the scenario as it exists.
CNBC called upon Tony Sacconaghi, an analyst with Sanford C Bernstein, and he attributed the downfall to multiple reasons, primary amongst them being heavy profit booking by investors. He went on to point out that with a market cap of $100 billion, Apple Inc (NASDAQ:AAPL) remains a fundamentally strong company which may be facing the adverse aftermath of declining global economic health. In light of the situation, Mr. Sacconaghi holds the opinion that a lot could depend on sales figures achieved by the company in January, 2015.
Some of the important metrics at play here would be the volume of sales that occurs during the upcoming holiday season and in addition to this, what would also matter is the return on investment that Apple Inc (NASDAQ:AAPL) might be expecting on its alterations. Whether the larger sized screen and higher storage capacity will actually augur an increase in revenue is something that will emerge only after the holiday season is over.
Another reason could be the decade long lawsuit which does not seem to take the course as hoped by the tech giant’s executives. That said Apple has received a positive rating from several analysts, The Street providing the following recommendation –
“We rate APPLE INC (AAPL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company’s strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.”
Apple Inc (NASDAQ:AAPL) can only hope that on reading the details of the analysis, investors are convinced enough to have faith in the stock.
This article has been written by Vinita Basu.