It was ugly scene on Wall Street this morning for Apple.
One day after the company reported holiday quarter earnings of $13.1 billion on record sales of 47.8 million iPhones, 22.9 million iPads and 4.1 million Macs, traders and investors punished the stock, presumably, over disappointing revenue. Revenue for the company’s first fiscal quarter climbed 18% to $54.51 billion, although analysts had expected $54.73 billion.
On Thursday, shares imploded to the tune of more than $50, trading close to $450 – a previously unthinkable level given the stock’s record-high price of $700 last fall.
“It’s just not fair” how investors are treating Apple, CNBC’s Jim Cramer said this morning, while adding that it’s understandable given how “Apple feels like a pitiful, helpless giant” today.
“I could argue that $458 is a good place to step in. It won’t trade at six times earnings for long,” Cramer said, perplexed that Apple was trading at the same ratio as Microsoft, which he sees acting more like a utility company than a tech behemoth.