Morgan Stanley: This is your chance to buy shares of Apple at a discount

“2015 has been less than stellar for shares of Apple,” Julie Verhage reports for Bloomberg. “The stock opened 2015 around $111 and is currently trading near $115 despite hitting an all time high of $134 earlier this year. That swift 15 percent decline is one of the steepest the stock has ever seen.”

“Morgan Stanley analysts Katy Huberty, Jerry Liu, and Elizabeth Elliott address some of the most prevalent investor concerns in their note that was sent out this morning,” Verhage reports. “They also say point blank that they view this as a place to buy.”

We are buyers on any related weakness as we see an upward bias to our iPhone unit and gross margin assumptions… We do not view the current set-up as similar to 2012 given 1) gross margins are improving (not deteriorating) as we head into the next iPhone cycle, 2) low institutional ownership, 3) competitive product line-up / stickier ecosystem against Android handsets, and 4) more robust product / services roadmap. — Morgan Stanley analysts Katy Huberty, Jerry Liu, and Elizabeth Elliott

Read more in the full article here.

MacDailyNews Take: Time to put the brakes on already? Enough with the faux “concern” so soon? Sheesh, we were hoping for $110, at least.

Why Apple investors should worry or something – August 5, 2015
Apple shares respond well to downgrades and lowered estimates – August 5, 2015
Bank of America downgrades Apple – August 5, 2015
Apple: The market’s false correction – August 5, 2015
Merrill Lynch cuts Apple rating; Jefferies, Global Equities foresee impending ‘disaster’ – August 5, 2015
‘The Curse of the Dow’ bites Apple – August 4, 2015
Apple enters correction territory: More carnage to come? – August 4, 2015
Analysts: This is the catalyst to push Apple higher – August 4, 2015
Why Apple’s next-gen iPhone 6s/Plus will generate 20% growth – August 4, 2015
Why there won’t be an iPhone 6s/Plus bump – August 4, 2015
Apple stock implosion shreds $113.4 billion and counting – August 4, 2015
About all of those reports that Apple is in dire straits – August 4, 2015
Continued Apple swoon could crush this market – August 4, 2015
Apple replacing AT&T causes Dow Jones Industrial Average to suffer – August 4, 2015
Apple stock now officially in correction territory as it crosses below key technical level – August 3, 2015
Nasdaq retreats amid tech selloff after Apple’s record results – July 22, 2015
Apple earnings: Good is never good enough – July 22, 2015
Cowen downgrades Apple on record quarterly earnings results – July 22, 2015
For Apple, more success raises more questions – July 22, 2015
Sorry, haters: Tim Cook confirms Apple Watch sales are much better than you think – July 22, 2015
Here’s how many Apple Watch units Apple sold – July 22, 2015
Drudge screams: ‘APPLE FUTURE QUESTIONED’ – July 21, 2015
Apple poised for $50 billion valuation loss after posting ‘disappointing’ record earnings – July 21, 2015
Apple shares plunge after ‘disappointing’ record third quarter results – July 21, 2015
MacDailyNews presents live notes from Apple’s Q315 Conference Call – July 21, 2015
Apple pulverizes the Street with record third quarter results – July 21, 2015


  1. Fanboys have been wailing about Apple’s stock woes. Morons. This is a chance to purchase Apple stock at a discount. If you believe Apple’s future is bright you will reap dividends. However, if you believe Apple’s best days are behind them sell now and move on. Your choice.

    1. It’s not a matter of whether Apple’s best days are behind them or not. It’s a matter of whether Wall Street thinks so. Even if Apple has a bright future, the share price can still end up in the toilet. It’s a risk for new investors to buy Apple when they can easily go elsewhere to make huge gains without the risk. Google, Amazon and Netflix have gains with little risk because they’re not being rigged to fail. Apple is being rigged to fail every quarter. How long it will last is anyone’s guess. Based on peer companies, Apple shouldn’t even have a P/E of 13 but it does and can probably go lower if Wall Street wants it that way. The risk isn’t Apple. The risk is Wall Street’s senseless valuations.

      However, for me, Apple is definitely a buy even if just for the dividends. Still, I see no guarantee of Apple going back up to $130 this year despite the higher target prices.

  2. I think the stock has been manipulated by the typical hedge fund guys who used deceit and criminal conduct to take a good stock down so they can make big money on both a short and then a long as they operate a roller coaster.

    But there is one other possibility. It may be that Tim Cook’s diversity plan is to have the stock appeal mainly to LGBTQMIA people, many of whom are not investors because they detest capitalism. So, we could have a exit by non homosexual non transsexual non intersexauls from the stock bringing down demand in a significant way. It could be the same strategy will impact sales a the oddball “heterosexual” demographic senses their business is not wanted and buys inferior competing products from companies that appreciate their existence. This could be what is happening. If so, it would logically drive the stock to about 2% of its former value as the stock adjusts to the size of the LGBTQMIA market.

  3. But, but, but . . . what’s the point of buying a stock at a low point when everyone else is running from it? Isn’t that dangerous, scary, and financially risky?

    Uh, YEAH, IT IS!! But that’s the whole point of investing: Buying low and selling high! And, make no mistake, only those with cojones the size of basketballs can successfully effect sometimes-terrifying decisions in and around bad news. Note: my family’s per share price of AAPL is $1.71 @ 40,000, split adjusted over the years (3 times, 2x2x7), and NO ONE ever applauded our decisions then or now to invest in this “losing,” down-on-its-luck company. NO ONE! EVER!

    Are times rough for AAPL right now? Yes. Period. But they have been equally rough–OR WORSE–before. If one truly believes in Apple Inc’s future, now is the time to grab and hold for the long term. But that is not easy. Not at all. Knowledge, faith, and cojones, a powerful trio in tough times.

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