“If you bought shares of Apple in recent months, you might be feeling pretty frustrated right now: After a stellar rise in the beginning half of the year, Apple’s share price this month dropped below $120 for the first time since February,” Susie Poppick reports for Money. “The price dive began after the company’s third quarter earnings report showed iPhone sales of 47.5 million, missing analysts’ expectations for 48.8 million. While that might seem like a minor miss for a business sitting on more than $200 billion in cash, it shows just how high hopes have gotten for what’s already the world’s most valuable company.”
“‘Investors expect Apple to keep finding new ways to move the needle, but that needle keeps getting bigger and harder to move,’ says Becker Capital Management president Pat Becker Jr., who invests in Apple through Becker’s value equity fund,” Poppick reports. “Still, any bearishness about Apple today must be put in perspective: After all, the Cupertino, California-based company has had a stellar year—even after the recent correction—with a share price 20% higher than it was a year ago.”
Poppick reports, “‘Nobody should be buying Apple expecting it to double in the next year,’ says Villere Balanced Fund co-portfolio manager Lamar Villere, who owns the stock in his fund. ‘But you’re also not taking a lot of risk.'”
Read more in the full article here.
MacDailyNews Take: Out at $130, in at $110. What a wonderful summer! Thanks for the free shares, shorts!
SEE ALSO:
Jim Cramer: This is why you hold Apple stock – August 10, 2015
Apple’s biggest problem: Wall Street – August 6, 2015
Apple stock will rebound for the same reason it’s swooning – August 6, 2015
Morgan Stanley: This is your chance to buy shares of Apple at a discount – August 6, 2015
Apple stock implosion shreds $113.4 billion and counting – August 4, 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
Apple pulverizes the Street with record third quarter results – July 21, 2015