Last night Apple released its quarterly earnings report. Though it hit revenue targets, the company didn’t sell as many iPhones as expected–and cautioned that upcoming holiday sales may not be so huge. To make matters worse, Apple also said it would stop disclosing unit sales of some of its biggest products.
Wall Street immediately responded; Apple’s stock dropped 5% last night. Now, still in pre-market trading, the stock is down by about 6% at $208.76.
Once the market opens, we’ll see if this drop sustains. But some analysts are already preparing for some big changes. Bank of America, for instance, downgraded Apple stock from neutral to sell, according to CNBC. The bank’s analyst, Wamsi Mohan, lowered his 12-month price target from $235 to $220.
Gene Munster also expressed dismay at the decision to stop reporting unit sales.”Apple wants investors to focus less on iPhone units, and more on the overall Apple business,” he was quoted saying in Bloomberg. “It’s going to take a few quarters for Apple to win investor confidence in this new way of analyzing the Apple story.”
We’ll keep an eye out to see if the Apple can rebound both today and after. But we may begin seeing a shift in the company’s outlook, given this last report and what it expects in the months to come.