Is Apple’s (AAPL) Stock to Drop Further or Is It Time to Buy?

Jun 20, 2011
J. Webster
Comments Off on Is Apple’s (AAPL) Stock to Drop Further or Is It Time to Buy?

Everyone loves Apple’s stock, and it’s cheap they all say. And they’ve got piles of cash. They make amazing products, such good products that once you have one you want another, from the iPod to the iPhone to the iPad. However, the economy is slowing, can Apple beat the market again?

Apple’s stock long term is almost a no brainer, with even Steve Jobs passing not hurting the stock that much, and investors might get a chance to buy the stock on the dip after their next earnings report. Or, is the drop off in Apple’s stock, it’s down to $315 from $350, the time to buy the stock before their next earnings report? It seems that with the Japanese economic slow down do to the earthquake, along with the trouble in Greece and the rest of Europe, investors who have been waiting to get in on Apple’s stock, might get their chance in the coming weeks.

Technical traders also talk about how Apple has broken below $325, the stock’s 200-day moving average, to a 6-month low.

On CNBC’s FastMoney half-time report they had this to say about Apple:

Looking at the fundamentals trader Jim Iurio isn’t sure what’s behind the slide in Apple. “I don’t know if it’s that (there’s) nothing new and earth shattering in the pipeline or (if its due to) increased competition, but for some reason the market doesn’t like Apple and they’re punishing it.”

Iurio goes on to explain that the technical move says to him that the market thinks the price of Apple is too high.

Trader Stephen Weiss isn’t so sure that market has it right. ”Apple is still one of the cheapest growth stocks that we have,” he says. But that doesn’t mean he’s a buyer. “Don’t catch a falling knife.” If you’re bullish Apple like Weiss, “wait for it to bottom,” he says.

Trader Josh Brown also thinks there’s more downside. “I love the company but $320 was a pretty major technical level,” he says.

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