U.S. Markets closed

Apple’s Growth Slows, Stock Falls Below $400

The Business Insider
Daily Ticker
Apple’s Growth Slows, Stock Falls Below $400

Provided by Business Insider's Jay Yarow

The market's reaction to Apple's earnings is not good.

The stock is down 3% this morning, pre-market, sending shares to $393.

This drop is actually worse than it sounds.

Related: Apple Shares Slump Below $400 But This Isn't Microsoft, Ritholtz Says

After earnings were released, Apple was up as much as 5% after-hours. But when people digested the report, and listened to Tim Cook on the earnings call, it started crumbling.

Investors are coming to grips with the fact that the once high-flying company is grinding to a halt.

Instead of being a story of hyper-growth, it's now a cash cow.

Apple says it has new products in the works, but they're not coming until the Fall.

Related: Apple Gearing Up To Launch New iPhone (Yawn)

Even when those new products hit, they're not going to be as lucrative or successful as the iPhone.

Because Apple generates so much money, a return to big growth is nearly impossible.

So, now you have a company that is neither here, nor there. It's not a safe bet because technology is unpredictable, and this management team has not proven an ability to produce visionary products. It's not a high growth tech company either.

Throw in the fact that Apple issued really soft guidance, which is sending analysts scrambling to readjust their models, and it's not going to be easy for the stock to bounce back today.

Watch the accompanying video to hear The Daily Ticker's Aaron Task and Henry Blodget discuss Apple's latest earnings report. While Apple may be slowing, Blodget still likes the stock and has faith in the tech company.

Tell Us What You Think!

Got a topic you’d like covered? Have a guest you’d like to see interviewed? Send an email to: thedailyticker@yahoo.com.

You can also look us up on Twitter and Facebook.

More from The Daily Ticker

The Recovery in Housing Is Behind Us: David Rosenberg

Why the Peak Resource Crowd Is Wrong

Bracing for Disaster: How Bad Will Apple's Earnings Be?