An Apple stock buying opportunity

“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?

SEE ALSO:
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

15 Comments

    1. Until the last hour of trading on Monday, Apple was actually in positive territory for the day. As of twenty minutes before closing Tuesday, it is up about twice as much (on a percentage basis) as the rest of the market.

      You really can’t blame Tim Cook for Apple’s market losses when everybody else is losing more.

  1. It’s certainly tempting to load up on AAPL after falling so sharply after earnings that were essentially pretty good, at least for folks capable of doing the math required to compare 13 vs. 14 weeks (a minority of the market it seems).

    However, the current pullback has little to do with Apple’s earnings report and all to do with the market’s general correction panic. Most tech stocks were down more than AAPL today. If tomorrow is a good timing to buy, or next week, or next month, is impossible to say. If buying the stock is for the long term, I bet it will turn out really profitable. If buying tomorrow is to make money for this summer’s vacation, I would stay at the sidelines.

  2. Life is unpredictable,. As I planed to get off the market completely after the super cycle. However, AAPL had sell-off after earning reports along with the market. So my dream is shattered!.😢😂🤧☹️

    1. Think long term … 1-2 days, weeks or months.. are short term ..
      Own Apple and other respectable stocks for the the long term…… use drops as discounts days….. if you believe in the fundimentals of the company u are invested in .
      IMO

    2. I’m in since 1998 Its done this many times. Sometimes takes a while to rebound. Hang in there. I’m way down.

      But I also understand wanting to get out. I also was planning to get out at this time. After earnings, I felt good after hours that I could pull the trigger, was caught like a thief in the night. Got to pull it fast. lol

      Made enough to buy a house, vehicle, have some fun. Cut back on work. Start volunteering and at my age is it worth years for it to come back?
      Or will this bounce back quick? Anyones guess right now.

      I’m 55 and been through this many times. Long and Strong. I’ll hold and wait for it to settle down, I would have been so proud of myself to have timed the sell and waited for a correction. But hey that is the way it goes. They are not getting my shares at this price. Apple killed it and deserves to be higher and PE. This to shall pass. Next year from now you won’t even be thinking about this? Stay strong. Keep that dream!

  3. The Bear is strong in Apple. Most analysts are going to tell buyers to avoid Apple and it isn’t the bargain it seems. They’ll tell how Apple’s iPhone sales are facing a bleak future and that story will be enough to send investors running to Amazon or any FANG stock. Does any other company have $163B to freely play around with? No. Will that be enough to excite greedy investors into buying Apple stock? No.

    To me, $163B is the bird in hand, but Wall Street only goes after the dozens of birds in a bush. I don’t believe Apple can lure big investors with that repatriated cash. I hope I’m wrong but the news media will continue to trash Apple and favor other tech stocks solely based on weaker iPhone sales. No one can fathom Apple selling more iPhones in a saturated smartphone market loaded with inexpensive Android smartphones. The more expensive iPhone will always be seen as a hard sell.

    About those fundamentals… forget them. There are plenty of high gain stocks with crappy fundamentals. Tesla would be a leading example. Qualcomm, would be another one. Big investors go after potential growth and not necessarily sound fundamentals. Those people are high-stakes gamblers who’d be just as comfortable sitting at a roulette wheel.

    1. ……but i dont believe most investors are gamblers.. ……… not even WS, manipulators they are … yes …
      In the long run though fundaments are what matter..
      Momentum stocks with no fundamentals are a different story … here today .. gone tomorrow.

      Apple relative to some other fang … is it overpriced or hugly undepriced: ttm pe of 16 , forward pe of 12…. 280 billion cash /net 160 billion .. 1.3 billion unique user base, most valubale brand status, customer satisfaction of %90+, a record smashing quarter ( 20+% growth for a company that size )….next q guidance that tops last year by 9 billion…
      repatriation… diividents, buybacks … etc.
      o
      On top i believe a massivly attractive lineup is coming this fall. I see the so called supercycle is due for late 2018… 2017 was a lets wait and see how the new paradigm is received…..and we know now people loved it… with a lower price point lcd x and two other oleds… and etc.. i see huge demand.

      Hence i see apple a buying opertunity .

      1. To emphasize again; please pay attention the the stats i provided above .
        ,…and dont underestime the lower priced lcd 6.1” iPhone X … its going to be a massive seller …

    1. Obstruction of Justice

      You should read up on Watergate. The parallels between the corrupt Nixon administration are uncannily similar to the Trump nuthouse. Except most Nicon staffers were competent and Nixon, when sober, was able to communicate in complete coherent sentences.

  4. We keep hearing about 13 vs 14 weeks and while I’m sure it has an impact I don’t think it would be a straight correlation since Christmas gift buying only applies before Christmas. The extra week wouldn’t have the same level of sales after Christmas. People would simply squeeze their purchases into the 13 week period.

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