Street slashes Apple price targets after earnings disappointment

Apple‘s stock tumbled nearly 8 percent in the premarket Wednesday as analysts expressed their disappointment with the tech giant’s latest quarterly report.

At least a dozen investment firms slashed their price targets on the stock, which was once considered a Wall Street darling. Among them was Drexel Hamilton, which cut his price target to $185 from $200.

“As the iPhone 6-Series nears the end of this two-year cycle and the macro backdrop remains challenging, volatility in Apple’s results is to be expected,” Drexel analyst Brian White said in a Wednesday note to clients, adding that he reduced his fiscal third-quarter earnings and revenue estimates to $1.37 a share and $42.05 billion, respectively, from $1.60 a share and $44.55 billion.

The tech giant posted fiscal second-quarter earnings of $1.90 a share on $50.56 billion in revenue, marking its first quarter-over-quarter revenue decline since 2003. Analysts polled by Thomson Reuters had expected Apple to report earnings of about $2 a share on $51.97 billion in revenue.

Apple also recorded its first-ever iPhone year-over-year sales decline last quarter. Despite this, Apple CEO Tim Cook told CNBC on Tuesday that the company is in “the early innings of the iPhone.”

Nonetheless, the Dow component recently fell back into bear-market territory.

AAPL in the last year

Apple is the latest major tech firm to disappoint on earnings. Last week, Microsoft and Google-parent Alphabet posted weaker-than-expected earnings, sending their stocks lower.

— CNBC’s Everett Rosenfeld contributed to this report.

Disclosure: Drexel has provided Apple with investment banking services in the past 12 months.

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