Bruised Apple (AAPL)!

Apple LogoWell ever good thing has to end! Apple finally disappointed the market by BLOWING AWAY its 2007 estimates, but then providing downward guidance (i.e. we aren’t going to GROW as fast) for 2008.

I tend to believe the analysts that say that Apple low-balled their outlook again, but I am going to wait on the sidelines for a while holding my current position to see where the bottom might be, and invest more on the way up.

I really don’t think Apple’s worldwide diversified business is going to be materially impacted by the US downturn. First of all, when an economy turns bad, people tend to spend less on things like new cars, eating out, expensive holidays, and spend MORE time at home with their various means of entertainment including movies, TV and music… the very places where Apple is investing.

Also, if kids are asking their parents for an iPod for Christmas, is a recession really going to keep that from happening?

Time will tell, but for now, I am still strong on Apple.


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