Apple shares began to rally on Friday - the company gained $2.0625 on the day, closing at $22.0625.
The recovery lost a little momentum on the afterhours market, where shares closed at $21.875. Trading in the stocks was high on the day, reaching 15.2 million exchanges on Nasdaq. Reuters reports analyst Ron Bruder, of Spear, Leeds and Kellogg, saying: “Trading volumes across the IT sector have gone up today because we have an aggressive buyer.”
results Analysts First Call/Thomson Financial issued revised earnings forecasts for the company, predicting 34 cents per share in Apple’s fourth quarter. Apple is due to report its final results on October 18. The company earned 26 cents per share in the same quarter last year.
Analysts' perception seems to be softening towards Apple, Bruder feels that “a lot of people are speculating on a movement away from the $20 level coming into earnings”.
Unfathomable Industry observers have been confounded by Apple’s rapid fall in share value, pointing out that the company’s tight control of inventory, it’s small number of debts, continued profitability and cash reserves are signs of a healthy company.
Despite this, analysts have revised their ratings on Apple in the weeks since its profit warning announcement. Credit Suisse First Boston and SG Cowen Securities have both downgraded the stock to “buy”. Merrill Lynch, Salomon Smith Barney, Bear Stearns, Morgan Stanley, Dean Witter and Paine Webber have also downgraded Apple, rating the stock as “neutral”.