Apple’s Q2 2016 earnings have been disasterous for the company’s share price, as AAPL stock suffered its worst week in three years.
Wall Street has suddenly soured on Apple, including Carl Icahn, who revealed earlier this week that he dumped all of his shares. With investors offloading shares, the company watched its market capitalization shrink by $65 billion in a mere three days, which is about the equivalent of Cambondia’s net wealth.
Tim Cook reassured investors during Tuesday’s earnings call that the future is still very bright for Apple. The CEO ravved about the innovative products coming down the company’s pipeline, but admitted iPhone sales are on the decline, and revenues are expected to decline again next quarter.
All that bad news caused Apple’s stock price to drop 11 percent, from a high of 105.48 on Monday and closing at 93.74 at the end of trading today.
Fears of China led Carl Icahn to sell off all his shares after he made over $3 billion on the stock over the last few years. Still, the iconic investors believes the stock is grossly undervalued and blames other investors and the media for not understanding Apple’s value and driving down the price.
“The tide is going out a bit, but it will probably improve in the fall with the launch of the next iPhone,” said Pat Becker Jr, principal of Becker Capital Management to Reuters. “This is an opportunity.”
Indeed many Apple analysts and fans are welcoming the stock price drop because it makes it cheaper to get in on AAPL than ever before. According to a poll ran by Reuters, analysts still think the stock should be worth around $120.