Tomorrow will tell whether things could get even worse for Apple

A share in Apple will now cost you less than a full-sized iPad.
A share in Apple will now cost you less than a full-sized iPad.
Image: AP Photo/Marcio Jose Sanchez
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Apple investors are preparing for the worst tomorrow when the company reports earnings. It is already expected to report a drop in profit for the first time in 10 years. The big question for shareholders: Has Apple’s share price bottomed out, or is there still room to drop?

There’s been even more gloomy news in recent days about the once shiny company. Chip supplier Cirrus Logic, which depends on Apple for over 90% of its revenue according to a Bloomberg estimate, last week reported a weak revenue forecast, probably because of lower demand for the iPhone. That sent Apple shares below the $400 mark for the first time since December 2011. Then there were reports that Apple put a hold on a parts order for Mac products. Now there are even rumors that CEO Tim Cook may be on his way out. That seems like a stretch, but shows how far the Apple has fallen from the tree.

Apple’s stock recovered briefly after first falling below $400 on April 17. But the following day, Apple shares again fell below $400 and have been trading at that level ever since. They even dipped below $390 a share at one point. Cook’s comments during the earnings call tomorrow will be critical in helping shareholders decide whether there is more room to fall.

Some analysts think all of Apple’s bad news is now priced into its stock, so the shares can only rise. They were up by more than 1.4% today. But investors have turned pretty cynical on Apple in recent months. And that cynicism suggests things could always get worse.