“A selloff in Apple Inc. shares is overdone, with investors fretting too much about iPhone unit sales and ignoring the potential of its growing services business, according to Morgan Stanley, which affirmed its overweight rating and $253 price target on the stock (average analyst PT $231),” Ryan Vlastelica reports for Bloomberg.
“Apple has dropped about 16 percent since early November, including in each of the five past sessions, largely on concerns that its flagship iPhone line is seeing weaker demand; a number of Apple suppliers have recently cut forecasts, while Apple itself said it would stop disclosing unit sales,” Vlastelica reports. “Morgan Stanley described the pullback as an overreaction and recommended buying the stock on the “unit-driven pullback” as Apple’s services business and stock buyback program will drive future earnings.”
“‘The selloff “suggests investors remain narrowly focused on units, despite the increasing value of Apple Services,’ it wrote to clients. ‘As the smartphone market matures, Services takes the growth baton from Devices which ultimately results in more stable growth and higher margins at Apple,'” Vlastelica reports. “‘News flow around units is creating volatility and a buying opportunity while the investor base is still in the process of transitioning away from units,’ the report read.”
Read more in the full article here.
MacDailyNews Take: Duh.
We hereby nominate the roughly $185 billion lopped off Apple’s market value since earnings being characterized as “overdone” for Understatement of the Year. That Apple pie was burnt to a crisp in a furnace fueled by irrationality laced with stupidity.
Did you buy on the “dip?” 🙂
SEE ALSO:
Misreading Apple’s supply chain and iPhone XR demand – November 15, 2018
Apple supplier AMS cuts forecast – November 15, 2018
Apple: Ignore the noise – November 14, 2018
Dialog Semi says not seeing hit to demand from Apple – November 14, 2018
Don’t panic about iPhone sales just yet – November 14, 2018
Apple stock: This is not a repeat of 2015-16 – November 14, 2018
Apple’s Asian suppliers fall on report of canceled iPhone XR production boost – November 6, 2018
Nikkei claims iPhone XR production cuts, Apple stock drops over 3% – November 5, 2018
Apple’s revolutionary iPhone X was the world’s best selling smartphone in Q118 – June 14, 2018
Nikkei again claims ‘weak demand’ for iPhone X despite much evidence to the contrary – February 20, 2018
iPhone X drives smartphone revenue dominance; Apple made more money in Q417 than the rest of the smartphone makers combined – February 16, 2018
Apple iPhone took more than half of worldwide smartphone revenue share in Q417, a new record – February 15, 2018
Apple supplier says report of iPhone X production cuts was overstated – January 30, 2018
Another January, another misleading iPhone supply cuts story from Nikkei – January 29, 2018
Apple stock drops after Nikkei report of iPhone X production cut – January 29, 2018
Canalys: Apple shipped 29 million iPhone X units in Q4 2017; world’s best-selling smartphone over the holiday season – January 23, 2018
Reports of Apple cutting iPhone X orders make no sense – January 2, 2018
Apple stock tumbles on one poorly-sourced report of low iPhone X demand – December 26, 2017
Apple and suppliers shares drop on report of weak iPhone X demand – December 26, 2017
Nikkei: Apple to decrease iPhone production 10% in first quarter of 2017 – December 30, 2016
Yup
Yes. Had a buy order in place at 196 which triggered either Monday or Friday, I forget which. Now to wait it out until the January announcement. It hurt to watch most of the past year’s gains erode away over the last three weeks but I’ve learned to stay the course and add to my AAPL holdings when the P/E heads too low.