(Source: Yahoo! Finance)
Stocks in technology giant Apple have fallen by nearly five per cent, and reports vary as to what bad news is driving the stock down.
ValueWalk suggests that the decline is due to comments made by Jefferies Equity Research:
[Analysts] anticipate that Apple Inc. financial results for the first quarter of the current fiscal year will be below the consensus estimates, and project substantial downside for the second quarter.
While at Business Insider they believe the slide may be related to problems with Cirrus, an Apple supplier:
Cirrus Logic's stock is down ~10% this morning after it pre-announced earnings results that were below expectations.
Cirrus's March revenue is expected to be $206.9 million compared to expectations of $210 million, said Canaccord analyst Bobby Burleson. Its EPS is $0.55 compared to expectations of $0.89. Cirrus also guided to $150-$170 million for the June quarter compared to consensus estimates of $195 million.
Apple is one of their largest customers. Cirrus was one of those companies people invested in as an Apple proxy. So, if its guidance is down, some people might anticipate Apple's guidance coming in weak.