“After making historical highs around $180 on January 19, shares of Apple have quickly retreated by nearly 10% from those levels, and bearish momentum seems to be accelerating,” Andres Cardenal writes for The Motley Fool. “Stock prices are practically impossible to predict in the short term. However, the risk and reward equation for investors in Apple is looking remarkably attractive on a long-term basis.”

“The market is overreacting,” Cardenal writes. “Apple delivered both sales and earnings numbers above Wall Street expectations last quarter, and the business is clearly healthy. The company produced $88.3 billion in revenue, an increase of 13% from the year-ago quarter and an all-time record for Apple. Earnings per share increased 16% to $3.89, also an all-time record for the company.”

“Apple’s 2017 holiday quarter included 13 weeks while the 2016 holiday quarter included 14 weeks. Doing some basic math, it makes a lot of sense to say that the company could have easily reported a small increase in iPhone unit sales if the most recent quarter had included 14 weeks,” Cardenal writes. “Besides, the iPhone X didn’t launch until early November. This means that this key product was completely unavailable for one-third of the entire quarter. It doesn’t sound unreasonable at all to say that sales would probably be materially higher if the iPhone X was in plentiful supply during the quarter.”

Read more in the full article here.

MacDailyNews Take: When to load up the truck is the only question. How low can it go?

Apple’s share price is bumping up against a key level – February 5, 2018
Dow recovers some ground after historic 1,500-point drop – February 5, 2018
Apple hits correction territory, closing down more than 10.5% from its January 18th record high – February 2, 2018
Dow plunges more than 600 points; Apple shares fall – February 2, 2018
Apple breaks record for biggest ever company profit – February 2, 2018
So much for worries over Apple’s iPhone X – February 1, 2018
MacDailyNews presents live notes from Apple’s Q118 conference call – February 1, 2018
Apple smashes Street with biggest quarter in company history – February 1, 2018