Apple Plunge On Downgrades Citing Weak Outlook

New York, NY (AHN) - Apple Computers Inc. (NASDAQ: AAPL) shares tumbled to hit a new 52-week low on Monday after its shares were downgraded by analysts, citing weak growth due to dropping consumer spending.

Morgan Stanley and RBC Capital Markets slashed their investment ratings on the stock, which was considered as the best-performing technology share last year.

RBC Capital Market cut its per share rating to "sector perform" from "outperform," while Morgan Stanley lowered its per share rating to "equal weight" from "overweight," on Monday.

Overall, consumer spending, which accounts for about 70 percent of GDP, has sluggishly expanded on worsening credit crunch and slumping housing market.

Apple shares tumbled to a new 52-week low of $105.77 from its previous low of $115.44, forcing the investors to sell off stocks in the technology sector.

The stock on the NASDAQ Stock Market was trading down by 16.19 percent or $20.76 to $107.48 at 2:20 p.m. EST on Monday.