Oct 19 Apple Inc shares were down
about 5 percent in premarket trading on Wednesday, the first
day after a rare quarterly earnings miss, but analysts called
the results a blip and said it presented a buying opportunity.
On Tuesday, Apple stunned Wall Street with quarterly
results that missed expectations for the first time in years as
customers held off buying iPhones until the latest version came
out in October.
One analyst called the results a "black swan" and said now
was the time to buy shares, with Apple providing a
stronger-than-expected first-quarter outlook.
"We would be aggressive buyers of Apple this morning as we
anticipate a big holiday season for the company," said
Ticonderoga Securities analyst Brian White, who reiterated a
buy rating on the stock.
White said he expected Apple's iPhone 4S to be "another
blockbuster iPhone product."
JP Morgan said in a note to clients the rare miss is
explainable and could be an entry point for opportunistic
investors. It added that shares of Apple are likely to come
under pressure in the near term but that the company's sales
overseas will ultimately boost its growth.
"Apple's ongoing penetration of China and other emerging
markets likely can be measured in years and stands to have a
significant, positive impact on the growth profile," JP Morgan
said in a research note.
Apple shares fell after its first quarterly earnings
report under Chief Executive Tim Cook, who took over from Steve
Jobs in August at a critical juncture for the company. Apple is
battling Google Inc in the mobile arena, as well as
other challengers such as Samsung and Amazon.com .
Apple said it sold 17.07 million iPhones in its fiscal
fourth quarter ended Sept. 24 -- well short of the roughly 20
million forecast by analysts. The iPhone is Apple's flagship
product, yielding some 40 percent of annual sales.
Apple shares fell $20.91 to $401.56 before the market