Analyst: Buy this dip in Apple stock before it’s out of reach

It’s been a bad week for tech stocks, including Apple stock. The Nasdaq tumbled 2.7% on Wednesday and the slide looks set to continue on Thursday. So, veteran tech analyst Daniel Ives of investment firm Wedbush Securities says to buy the dip before tech stocks move at least 25% higher this year.

Analyst: Buy this dip in Apple stock before it's out of reachJack Denton for MarketWatch:

“The risk-off trade for tech has been a painful one for tech investors this week as worries around high valuations, bubble fears, rotation trade, rising yields and a focus on reopening plays take center stage,” Ives said.

But, according to Ives, the digital transformation is just getting started and will last a number of years among companies in cloud, cybersecurity, e-commerce and 5G. These subsectors are the life of the tech party, with consumer and enterprise demand catalyzing a “multiyear growth boom” ahead, the analyst said.

Investors should use the current market weakness to ensure that Apple, Microsoft, DocuSign, Zscaler, Palo Alto, SailPoint, and Nuance are included in their portfolios, Ives advised.

Across the wider sector, Wedbush predicts that tech stocks will move at least 25% upward in the next year. That will be driven by big names Facebook, Amazon, Apple, Netflix, and Google parent Alphabet, as well as cloud and cybersecurity stocks, despite the recent selloff, Ives said.

MacDailyNews Take: Better to buy low than high, we always say!

“A market downturn doesn’t bother us. It is an opportunity to increase our ownership of great companies with great management at good prices.” — Warren Buffett

13 Comments

  1. Take your time, you’ll have plenty of waiting time for Apple’s stock to rise.

    Hopefully, the stock price won’t rise for months, allowing small retail investors to pick up shares on the cheap over many months. Big fund investors have no interest in Apple’s slow-moving stock with so many hot momentum stocks to choose from. I want Apple’s share price to stay low so Apple’s cash-burning buyback plan can work to its fullest advantage. Let the stock go up at year’s end after Apple has blown its wad of buyback cash. Tim Cook and Warren Buffett are two of kind with their boring stock buyback strategy. They both believe that’s the best they can do with their extra cash. There is no point in Apple’s stock going up mid-year unless you intend to sell it. Maybe this is part of Apple’s plan to mainly appeal to long-term investors.

    I’ve seen comments on the Apple Yahoo Finance forum where some investors buy Apple stock hoping to see it go up in a short time period, but when they don’t see any action for months, they decide to sell their Apple stock. It has to be rather frustrating for many investors hoping to see quick returns from Apple. Nope, it’s not happening. They’d better head for Cathie Wood’s stock picks if they want some fast gains. Netflix, Roku, Spotify and Tesla will definitely perform quicker than Apple. Heck, even messed-up Boeing’s stock will move faster than Apple’s stock. It all depends upon what an investor is looking for. Long-term gains, go with AAPL. Short-term gains, go with any other stock. This buyback strategy does seem to make Apple stock a bit less volatile but we’ll see if it stays this way for the remainder of the year.

    1. I agree with some of what you’ve said here, but I’d also like to see Apple get more generous with that mountain of cash and raise the dividend more significantly. There’s no law that says you can’t increase both buybacks and dividends. Dividends are more likely to create long term HOLDERS of the stock, as opposed to short term traders.

      I believe both MDN and Jim Cramer encourage owning AAPL and not trading it. I concur.

      That being said, I don’t really understand the Roku play. We have 2 Roku Ultras that replaced our 2 AppleTV units. We actually watch AppleTV+ stuff on them and currently only use the AppleTV hardware for AppleFitness routines. At least wife and son do. AppleTV hardware is still sadly the weakest part of Apple’s hardware line up (and don’t get me started on that hideous remote…).

      AFAIK, Roku only makes their little boxes, which are a lovely way to stream. But why is their stock so highly valued? Especially when they’re not making a profit and I still can’t figure how they’re going to cash in on ad revenue. They seem seriously overvalued to me for a company that doesn’t make much hardware or ad revenue, but maybe I’m missing something?

    2. I’m betting on it going much lower before I bite. After last year’s “irrational exuberance” around tech stocks we may be yet to see the full correction.

      1. The climbing bond yield rate is having a challenging effect on equities. J Powell needs to adjust per his Fed magical powers (dig the hole deeper) . Until then, the bond yield rate brings uncertainty that could keep the AAPL price at a distance from ATH, and could result in additional declines.

        Agree with JA…tech stocks have had an up decade and many say a term change is in order (correction).

        With so much stimi about to flood the market–again–inflation will result. Will it inflate stock assets, of which AAPL has benefitted greatly since ’08, OR is inflation going to land on commodities (already seen) and other items defined as essentials…”what we need?”

        Fortunately, in today’s world the phone is a must have, so, AAPL could and probably will, straddle the “what’s needed” and “what’s wanted” market. The iPhone is a great hedge, regardless.

          1. Ok…repeat it if it was so good.
            You are “defending” the investment you are leaving…funny.
            I don’t remember saying one doesn’t make $$ off a speculative investment?

            Sounds like BTC would be a good buy for you…when it dips.

  2. The buying opportunity will be lengthy and will get much better as the Biden financial plan has time to produce results. $5 gasoline, extended shutdowns, massive influx of poor diseased (COVID) people from third world countries, the ending of coal and natural gas heating and electric generation, government health care expanded to cover frequent transitions between the 100 currently known genders and genders discovered during Biden’s term, all these things and more will help Apple stock reach new buying opportunity levels, every day better than the previous. I notice today is a new and better opportunity, as was yesterday. So, keep your powder (money) dry and wait till Apple hits $10 a share, and then make a small move, and hold money back for future purchases as it moves further down.

      1. I don’t like talking politics when we should be talking about all things Apple, but true patriotism, is rooting for country over party.

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