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Why Apple’s share price rallied to reclaim a key threshold

“Shares of Apple enjoyed solid gains today, rising more than $15, or nearly 4%, by the afternoon following four days of relentless selling that saw the Mac maker shed nearly $29 since last Tuesday,” Evan Niu writes for The Motley Fool. “That four-day streak of losses put the company down over 6%, representing a market cap decline of an incredible $27 billion.”

“Apple’s valuation fell below the important threshold of $400 billion in the process, with yesterday’s low of $419 valuing the company at $393 billion,” Niu writes. “Shares have now reclaimed that threshold. What drove the rally?”

Niu writes, “Two Street analysts appeared on CNBC this morning to discuss Apple’s prospects, which may have fed some bulls. BGC Financial analyst Collin Gillis, who rates Apple a hold, acknowledged that it would seem that the stock is starting to bottom out… Bernstein Research analyst Toni Sacconaghi, who considers Apple a buy and has assigned a $725 price target, was expectedly more bullish than Gillis. Investors widely believe that Apple is preparing to ‘materially’ return more cash, a move that Sacconaghi believes could spark a rally of $40 to $50.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

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