Apple shares have struggled mightily in 2024, and the ongoing weakness has the stock looking like it is the most oversold in years, analysts say.
Ryan Vlastelica for Bloomberg News:
Shares of the iPhone maker are down 14% from a recent peak and have dropped 12% this year, compared with a gain of 7.42% for the Nasdaq 100 Index. Apple shares have been pressured by concerns over iPhone sales in China and a fine from the European Union.
The stock fell 0.3% on Wednesday, its sixth straight negative session. The 7.2% decline over that six-day drop has erased more than $200 billion in market capitalization.
“At some point this hate is going to be too much, and most oversold in six years seems like a good place to start,” Michael Toomey, head of TMT trading at Jefferies LLC, wrote in a note to clients.
Jefferies looked at the relative strength index of long Apple positions versus short positions in the Invesco QQQ Trust Series 1, the exchange-traded fund that tracks the Nasdaq 100. Based on this, “this is the most oversold AAPL/QQQ has been since early 2018.”
Bespoke Investment Group LLC wrote in a post on X that Apple is more than three standard deviations below its 50-day moving average, and that “it hasn’t been this oversold since March 16th, 2020 in the throes of the COVID crash.”
MacDailyNews Take: Overwrought times like these are pure gifts for longterm Apple investors. We dream of sub-$150, even sub-%160. Regardless, accumulate.
I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful. – Warren Buffett
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