Analyst: AAPL Dip Could Represent Buying Opportunity

| Apple Stock Watch

More analysts have offered comment on Apple regarding CEO Steve Jobs’s newest medical leave of absence, and the consensus appears to be that they are confident that Apple can continue to execute well during an absence from the iconic CEO. Kaufman Bros. analyst Shaw Wu went so far as to say that any dip in the stock could represent a buying opportunity for investors.

“Obviously the stock is going to get hit tomorrow, but I see no reason why this stock won’t continue to work,” Mr. Wu told Reuters.

Echoing similar sentiments, Alexander Peterc of Exane told Reuters, “This will come as a surprise to Apple investors and definitely take some shine off the Apple stock; but even if Steve Jobs never returns to Apple, I would not expect a visible, tangible impact on how Apple is executing over the next couple of years.”

Not all analysts were as ebullient, however; Richard Windsor told the news service that Mr. Jobs’s absence should not fundamentally affect the company, but he noted that, “[Investor perception of the company is another matter.”

He added, “Steve Jobs is seen by the market to be a major force in Apple’s strategic direction. If his pancreatic cancer has returned, one could be quite worried.”

Earlier on Monday, we reported that Brian Marshall of Gleacher & Co. felt there was support for the stock at US$300 per share, noting that the markets could take a 15% bite out of AAPL. Additionally, he told Reuters, “Clearly Steve is a visionary. And at $350 a share this is going to weigh on investors.”

Apple reports earnings for the December quarter Tuesday evening, after the markets close. The U.S. markets were closed Monday in observance of Martin Luther King Day, a U.S. federal holiday, but trading in the stock will resume Tuesday morning. Investors pared 6.4% off the stock on the Frankfurt exchange, which was open Monday.

*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.  


Constable Odo

Investor perception will take Apple shares down hard no matter how big a quarter Apple had. The company’s value is almost nothing without Steve Jobs in Wall Street’s narrow view. Deathwatch 2 has already started and the media will continue to fuel the fire for the rest of the year.  All those high target prices will immediately drop along with the current share price.  As Steve’s health goes south, so does Apple’s share price.  Everyone says Apple shares are overvalued and this is how they’re going to bring them down to earth.


Really?  Then in that case, it’s a perfect opportunity you to short AAPL right?  How much are you going to put into it with such a clear vision of what’s going to happen?


Really?? Then in that case, it?s a perfect opportunity you to short AAPL right?? How much are you going to put into it with such a clear vision of what?s going to happen?

You won’t be able to short AAPL at Friday’s price, only at today’s opening price which will be a lot lower. There will be a lot of panic selling, and then the price will go up again. Anyone who panic sells will lose money (obviously if you bought at $100 and panic sell at $300 you don’t lose, but you make a lot less than you could have). Anyone who shorted on Friday was exceptionally lucky and should cover right now. Anyone who shorts today will lose money. And anyone who buys this morning when it’s low will make a good profit.


Everyone says Apple shares are overvalued and this is how they?re going to bring them down to earth.

I don’t think that’s been a trend lately. Not with multiple targets set above $400. I can’t think of a single firm that has marked Apple as even hold much less sell in the last year. If everyone thought they were overvalued, someone would actually say something.

Log in to comment (TMO, Twitter or Facebook) or Register for a TMO account