“The market is punishing Apple for removing sales guidance on iPhones. Apple has shed over 22% or $49 a share from the $220 level after reporting earnings on November 1st,” Giovanni DiMauro writes for Seeking Alpha. “Apple has fallen into bear market territory; the game has changed. Wall Street is trashing market leaders as deep pockets continue taking profits after a multiyear rally for the ages.”
“Apple has been a darling of Wall Street and with good reason. The company has a fantastic business model. They also have the number one investor in the world as a major shareholder, Warren Buffett,” DiMauro writes. “At what price does Apple become a strong buy? That my investor friends, is the billion-dollar question. Is this sell-off different from others? It feels like it, but to be frank, I do not know. When in doubt, I go to the charts.”
“Granted the stock is in a sell-off, but what an epic run! Apple stock may be one of the greatest wealth creation vehicles in human history. I wish I would have been smart enough to buy Apple in 2005 when it was trading for $5.50 a share,” DiMauro writes. “Granted the stock is in a sell-off, but what an epic run! Apple stock may be one of the greatest wealth creation vehicles in human history. I wish I would have been smart enough to buy Apple in 2005 when it was trading for $5.50 a share… Apple management will be buying back stock over the coming weeks and months thereby supporting the share price. In my opinion, the share price will find strong support around the $150 level.”
Warren Buffett’s Berkshire Hathaway increased its stake in Apple to 252 million shares as of June 30. The investment is worth more than $50B, making Berkshire the third-biggest shareholder in Apple according to data compiled by Bloomberg,” DiMauro writes. “Is he buying this current plunge? Investors will have to wait and see.”
Read more in the full article here.
MacDailyNews Take: This overreaction, computer-aided or otherwise, is the greatest Christmas gift we’ve seen in a long time!
When the lemmings, er… “analysts” start their upgrade parade, then you’ll know the bottom has been found.
Explaining the recent Apple selloff, and why the stock looks undervalued – November 23, 2018
Apple is no longer worth anywhere near one trillion dollars – November 23, 2018
Apple to lower iPhone XR pricing in Japan in order to boost sales – November 23, 2018
Why the bad news on Apple keeps on coming – November 23, 2018
In the darkest hour of Apple’s ‘white-knuckle period,’ some investors are loving it – November 21, 2018