Your favorite Apple, iPhone, iPad, iOS, Jailbreak, and Cydia site.
Mac Newsforums, a part of the
01-02-2014, 07:11 AM #1
Wells Fargo Downgrades AAPL Stock Due to Gross Margin Concerns
Wells Fargo recently downgraded AAPL stock from “outperform” to “market perform,” citing the fact that the company’s gross margins have typically fallen 2.25% in the two quarters following the launch of a brand new iPhone model (rather than an S upgrade). The company had the following to say regarding their change:
Our bullish thesis on Apple had been predicated on the expectation for gross margin (GM) expansion driven by the 5s cycle. While we still have conviction in the gross margin thesis (and the potential for iPad/iPhone unit upside), we believe this may be largely embedded into the valuation.
Source: Wells Fargo via 9to5Mac