Apple’s stock price took an un-precedented tumble this afternoon after a number of investment firms downgraded the stock due to gloomy economic conditions. The stock, which hit an intraday low of $100, was downgraded by Morgan Stanely and RBC Capital. Morgan Stanley analyst Kathryn Huberty lowered her price target of Apple to $115, citing weakening consumer demand for electronics. Coupled with a downgrade from RBC, Apple’s stock lost 20 billion dollars in market cap this afternoon.
Kathryn Huberty raises a bit of controversy as an Apple analyst. She has been deemed one of the worst Apple analysts on Wall Street, and her forecast for Apple’s second fiscal quarter this year were so off-base it makes one question how she came to her estimates in the first place. Take a look at the chart below; the correct estimates are highlighted in blue.