Apple’s suppliers are the latest casualty of an analyst note advising investors to ditch their Apple shares before the iPhone 6 comes out on September 9.
Pacific Crest analyst Andy Hargraves triggered an Apple selloff this morning, causing the stock to dip below $US100 for the first time in about two weeks.
Here’s what Hargraves had to say about Apple in his note:
“We recommend investors begin to take profits in AAPL. We are maintaining our Outperform rating until we see detail on new products and services at Apple’s Sept. 9 event. However, if the announced products and services do not suggest massive incremental profit opportunities, we are likely to downgrade our rating for AAPL.”
That has turned out to be bad news for Apple’s suppliers, like GT Advanced Technologies (GTAT), which makes the Sapphire glass rumoured to be on the iPhone 6. GTAT was down nearly 5.5% when markets closed on Wednesday.
It’s not just GTAT that took a hit Wednesday. TriQuint Semiconductor, Inc., (TQNT) another Apple contractor, was down sharply as well:
As The Street points out, Skyworks Solutions, Cirrus Logic, and RF Micro devices — all Apple suppliers — were also down on Wednesday.