Apple stock looks less like a disaster and more like a buying opportunity

Despite the Nasdaq turning the slightest shade of green today, the price of Apple stock again dipped in afternoon trading.

Stock Chart

Rich Smith for The Motley Fool.:

As of 2:30 p.m. ET, the Naz was up a fraction of 1% — but Apple stock was down 2.2%.

Don’t expect that to last very long.

Bank of America shaved $15 off of its price target on Apple stock this morning. Citing both supply chain and macroeconomic (i.e., inflation and interest rates) headwinds, BofA warned that Apple’s valuation multiple is getting compressed.

On the other hand, though, BofA also said that there are now 1.8 billion iPhones out there in the world, hinting that this huge “installed base” bodes well for sales of services, and of replacement iPhones, and of other Apple merchandise, going forward.

Bloomberg just reported that Apple’s augmented and virtual reality headset — still just rumored to be in development as recently as December — has now advanced to the point that Apple was able to present a prototype to its board of directors for review… With Apple shares down 24% since the start of the year, valued only about 10% above the average P/E ratio on the S&P 500, and pegged for 12% long-term earnings growth, buying Apple stock right before it introduces an exciting, brand new product category might not be the worst idea I’ve ever heard.

MacDailyNews Take: We’ll dream of sub-$120 Apple stock tonight.

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5 Comments

  1. I’m glad to see the fools all panicky and dumping their Apple stock. This certainly makes Apple’s buyback strategy worthwhile. I hope Apple is buying back plenty of shares at this level. All the shares I’m holding will end up more valuable as more shares disappear. I’m not certain why there is so much dumping going on, but I’m not too concerned about it. I wonder what people are doing with that money they’re holding on the sidelines, but it’s probably not working for them. Maybe they’re stuffing their mattresses with all that cash. Good for them. Maybe their fear will get Apple down to $120 or so. That’s fine by me. My shares will be staying in Apple for the year.

    1. Another knuckle dragging cretinous Tim Cook knob slobber. Buy backs don’t do shit for you. 180 billion dollars spent on buy backs and AAPL shares have TANKED. Where did all that cash go? Tim Cook incinerated it. Gone. Up in smoke. Flushed down the toilet. 100% GONE.

      Only the financially ignorant people believe in stock buybacks. All of them are Tim Cook knob slobbers.

      1. Buy an Apple Watch, it has built in haptic based reminder to help you in times like this where you’ve forgotten to take you cocktail of medications

  2. MDN, you’ve been spot on regarding the long term view of Apple. Those listening to you over the last 7 years will have cleaned up. But unless someone is buying right now for the long term, there are indications the whole market has got more room to fall especially companies that don’t make money but are valued highly based ‘on what will be’ and highly profitable behemoths (Apple, Microsoft) that have high P/Es. Look at Amazon with its P/E still above 50. The stock is taking a beating even those its outlook is all roses. Apple has a P/E of 23. That is a steal when money is cheap and money will be cheap again one day. But most believe rates have to be 3.5 or higher sooner or later to have any chance at inflation reduction. History says P/Es get depressed when money gets more expensive.
    Also, The bull spikes we are seeing are lower volume than the bear drops. Never a good sign when upwards price action has notably lower volume than downwards price action. It suggests people are for more ready to sell than buy (and there is some evidence to suggest the bull spikes are in part big trading houses covering their shorts).
    IMHO (and only IMHO) this is not a good time to buy if you’re a short term investor. Look to see buying days volume getting even with selling days.

  3. There’s something to be said for being in the right place at the right time fnaf 2. That might sound like a cliché, but it’s not. It’s true. If you’re in the right place with the right timing, you can be successful. You can do it. basketbros

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