Will We All Laugh at Oracle Investment Research’s Downgrade of Apple?

Aug 27, 2012
J. Webster
Comments Off on Will We All Laugh at Oracle Investment Research’s Downgrade of Apple?

About a week ago, a more or less unknown research company downgraded Apple’s stock. Since then it’s gone up 25 smackers. Apple is the stock you just must buy whenever there’s a dip. And this downgrade created a buying dip in hindsight. But overall, I wonder if we’re going to look back on this rare and maybe even brave Apple downgrade and laugh as Apple’s stock heads closer and closer to $1000 a share and a trillion dollar market capitalization. Yes, $1000 is the target price for must analysts.

In a sense, Oracle Investment Research, with the supposed future predicting word “oracle” in their company name, are calling a top in Apple. If there’s one thing Apple’s stock has down over the past few years is make people who’ve tried to say it can’t go much higher look very stupid.

Apple (NASDAQ: AAPL) is getting a rare downgrade intra-day Tuesday. Oracle Investment Research downgraded Apple from Buy to Hold with a price target of $650.

Analyst Laurence Balter, said the “the hype concerns us, as it sounds vaguely familiar to another decade (remember when Microsoft (Nasdaq: MSFT) and Cisco (Nasdaq: CSCO) were maket cap kings.”

Apple’s market cap is now equal to $87.93 for every person on the planet, he quips.

Balter believes there is margin danger with Apple entering the word of set-top-boxes and TVs. He also notes sales growth is deceleration and the expectations are high.

“Anything that can’t go on forever… will end,” Balter quotes Warren Buffett as saying. (StreetInsider)

One person who thought this Apple downgrade was absurd was CNBC’s Jon Najarian. He said they were wrong to say Apple TV was a negative to margins:

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