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Apple stock plunges 12% after earnings disappointment

Published on Jan 24, 2013 10:35 PM
In this Sept 11, 2013, file photo, the Apple logo is seen at the Yerba Buena Center for Arts in San Francisco. Apple shares plunged more than 10 per cent at the open on Thursday as markets reacted to a disappointing outlook from the US tech giant despite its record quarterly profits. -- PHOTO: AFP

NEW YORK (REUTERS) - Apple’s shares slumped 12 per cent on Thursday, slicing more than US$50 billion (S$61 billion) from its market value, as weaker-than-expected holiday iPhone sales reinforced fears that it is losing its dominance in the smartphone market.

Eighteen brokerages, including Barclays Capital, Mizuho Securities USA, Credit Suisse, Raymond James, Robert W. Baird & Co and Canaccord Genuity, cut their price targets on the stock by an average US$132 to US$612.

Apple’s shares slid to US$450.66 at the open on the Nasdaq, before recouping some of their losses. The stock hit a peak close of US$702.10 on Sept 19, valuing the company at US$658 billion. Since then, it has lost about US$225 billion, or 35 per cent, of its in market value – or about the entire worth of Chevron, the second biggest US oil company.

Jefferies & Co cut its rating on Apple’s stock to “hold” from “buy” and slashed its share price target by US$300 to US$500.

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