Ouch... Apple.. Ouch...

I’ve been receiving messages about Apple (AAPL) from friends for about an hour now. Apple is free falling by -28.67 (-18.42%) right now on after market trading… Ouch indeed…

Although it reported another revenue record-braking quarter, investors are disappointed by it’s outlooks for the second quarter. The company lowered its outlook due to slowing economic activity in the US and investors in the US are uncertain as to exactly how the economic situation in the US, together with the fear of a recession, will affect the company.

Analyst Shebly Seyrafi of Caris & Co. cut his rating on the company’s stock from buy to above average, citing slowdowns in iPod sales.
Most other analysts, however, are going out on Apple’s defense, keeping its Buy rating and just trimming the target price.

Citigroup cut its price target to $212 from $215 while RBC trimmed its view to $200 from $215. Bear Stearns analyst Andy Neff cut his target to $220.

“While our concern remains on the potential for a slowdown in consumer spending, we view the stock’s after-market weakness as a buying opportunity as Apple is on the cusp of multiple product cycles,” he said in a client note, referring to new product introductions.

In lowering his price target to $175 from $220, Goldman Sachs analyst David Bailey said Apple will need to shore up Mac and iPhone sales as iPod growth slows.

“Apple has fundamental and valuation underpinnings, which should allow the stock to outperform on an absolute and relative basis longer term, and we are maintaining our Buy rating,” he said in a note to subscribers.

– Reuters

When buying Apple shares I knew this was going to be a long term term investments for at least year.
Although the economic slowdown, Apple is still a company that innovates, disrupts and keeps us all begging for more… As such I’m sure it can continue growing on the long run…

I’m not selling anytime soon.

P.S.
Microsoft (MSFT) reports its earnings tomorrow. Lets see how well that goes…