Today Credit Suisse cut its target price for Apple stock down to $110 from a previous target of $145. USB also downgraded their target price for Apple down to $115 from a previous target of $125 citing market uncertainty and deteriorating economic conditions.
Interestingly enough, Apple is trading up 7 points today on the good news it announced at yesterdays conference call, despite the fact that its guidance was lower than what Wall St. was expecting. This is noteworthy because Apple’s stock has traditionally tanked when it announced lower than expected guidance, no matter what other good news they announced. Now, investors are ignoring the conservative guidance and focusing on the impressive iPhones and Macs sales instead, which is especially surprising given the current economic climate. If this isn’t indicative of Wall St. manipulating stocks at its whim then I don’t know what is. When Apple’s high, they drive the price lower by focusing on guidance. When Apple’s low, they drive the price up by focusing on positive sales announcements.