This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Investor Alert: Wall Street Analysts Screwing You on Apple

Stocks in this article: AAPL MSFT AMZN

NEW YORK ( TheStreet) -- This might end up the shortest article I ever write because, really, the title says it all:

Investor Alert: Wall Street Analysts Screwing You on Apple

Apple (AAPL) knocked below $500 in premarket trading Monday morning. It rebounded nicely, but who knows where it will end the day or what the week holds?

Why is it down? Because of pathetic, know-nothing Wall Street analysts.

Last night, Citi downgraded the stock and set a price target below $600. Just this morning Pacific Crest did the same. Canaccord Genuity also lowered estimates and set its target at $750. They're all doing it on the basis of what they call weak demand. And they're certainly not doing it independent of one another.

You mean to tell me that each of these guys, suddenly, spotted this weak trend in iPhone and iPad sales and just so happened to lower estimates and price targets at the same time, on the same morning. Give me a freaking break! Do they think we're total idiots?

This is absurd. Absolutely absurd. These guys need a weatherman to know which way the wind blows.

Long-term I am cautious Apple, however, that thesis has hardly even started to play itself out.

Here's what matters today: Demand for Apple products, particularly iPhone 5 (2 million sold in China over the weekend) and iPad mini (flying off of the shelves in America this past weekend) is through the roof. Apple will annihilate the holiday quarter.

If Apple has a demand problem other retailers/tech names such as Microsoft (MSFT) should close shop today out of embarrassment and investors should send their stocks to zero.

Many Wall Street analysts try to make you believe they use some sort of reliable scientific method to get to their price targets and iPhone "estimates." They don't. They employ old tired "models" you can find in the 45th edition of textbooks really bad MBA programs use.

If Apple is in trouble, you might as well just give up. I don't mean give up on the market. You can still make money with plenty of stocks or simply by checking your emotion at the door and trading/investing on somebody else's psychological missteps. I mean give up on the hope that logic prevails.

That said, rationality will win out here. It just might not happen until retail numbers start to trickle out and we discover that the only clear winners were Apple, (AMZN) and an online story here or there.

For now, plain and simple, you're being screwed by the people who, apparently, own the responsibility of guiding you, managing your money and analyzing the companies and stocks you invest in.

--Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs