Apple faces financial reality check

The cocaine nose jobs of Wall Street are worried that the Apple juggernaut might just have run out of steam.

When Apple announces its results, several analysts told Reuters that they will be going over them with a fine tooth comb.

For the last five days, Apple shares have been taking a hammering as Wall Street and many investors started to fear that the stock was overvalued.

Apple is starting to look like a bubble waiting to burst. Jobs’ Mob faces major legal challenges across several continents, some of which are of its own making.

It is also facing increased competition from Android. It has also not come up with a new product for a while, just fairly dull enhancements of the old ones.

All this happened as Apple’s shares surged nearly 60 percent to a high of $644 this year.

Analyst Channing Smith, co-manager at Capital Advisors Growth Fund told Reuters that the slightest bit of a disappointment in Jobs’ Mob could result in a significant selloff.

Smith said that when share prices get above $600 you start to realise that things are losing perspective.

Most investors still think Apple has legs and even the shareholders that will abandon the outfit will do so because the share price is too high and may come back.

But the feeling is on Wall Street is that investors need to have a bit of common sense when it comes to Apple.