Despite Apple’s attempt to convince investors otherwise, Oppenheimer & Co. told clients new questions about CEO Steve Jobs’ health made the Cupertino, Calif. company a risky long-term bet.
The investment house downgraded Apple’s stock to “perform” from “outperform” following Tuesday’s announcement Jobs would not appear as keynote speaker at the Macworld 2009 tradeshow – the last year Apple would attend the annual event.
“Whatever the reason, the unexpected announcement has underscored the greatest risk to Apple’s long-term success — its dependence on Jobs’ health and its apparent lack of a succession plan,” analyst Yair Reiner wrote investors.
At 10:14 Eastern, Apple shares were down 7.26 percent to $88.17, after opening leading a tech sector off less than 1 percent.
Prior to Apple’s statement, Goldman Sachs analyst David Bailey downgraded company shares to “Nuetral” from “Buy,” citing the lack of new products expected to be announced by Apple at Macworld.
Although tradeshow promoter IDG says Macworld will go on without Apple, Tuesday’s decision appears to have caught them flat-footed. Earlier in the day, Macworld Expo general manager Paul Kent told reporters he had “no reason to believe that plans are not moving ahead.”
In a statement Tuesday, Apple said senior vice president of marketing Philip Schiller would give the keynote address, set for Jan.6 at San Francisco’s Moscone Center.
In June and September Jobs appeared before reporters looking thin, causing questions about his health to reignite. In 2004, the 53 year-old Apple leader underwent surgery for pancreatic cancer.
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