SAN FRANCISCO -- Investors lopped $15 billion off Apple Inc.'s market value Wednesday, punishing the company for a disappointing earnings outlook even as many technology stocks staged a comeback.
Fears about weakening consumer spending in the U.S. and a slowdown in iPod sales growth helped fuel a sell-off in Apple shares, which fell $16.57, or nearly 11 percent, to close at $139.07.
The stock had fallen nearly 20 percent in early trading but regained some ground during the day.
"The stock valuation probably got a little bit out of hand, so you're seeing a reset in terms of the stock price and expectations," said Shaw Wu, an analyst with American Technology Research. "But the big concern is with the iPod business."
Investors pounced on discounted technology stocks Wednesday, helping the tech-heavy Nasdaq composite index rally back from a rough start to end higher by 24.14 points at 2,316.41.
http://www.washingtonpost.com/wp-dy.../01/23/AR2008012301246.html?wpisrc=newsletter
Fears about weakening consumer spending in the U.S. and a slowdown in iPod sales growth helped fuel a sell-off in Apple shares, which fell $16.57, or nearly 11 percent, to close at $139.07.
The stock had fallen nearly 20 percent in early trading but regained some ground during the day.
"The stock valuation probably got a little bit out of hand, so you're seeing a reset in terms of the stock price and expectations," said Shaw Wu, an analyst with American Technology Research. "But the big concern is with the iPod business."
Investors pounced on discounted technology stocks Wednesday, helping the tech-heavy Nasdaq composite index rally back from a rough start to end higher by 24.14 points at 2,316.41.
http://www.washingtonpost.com/wp-dy.../01/23/AR2008012301246.html?wpisrc=newsletter