At the start of the trading session on Tuesday the 23rd On February 25th, Apple traded below $ 120 per share for the first time since November 2020 – ie a three-month low. At those intraday levels, the stock had corrected 18% from its all-time high set on early April 25th January of this year was reached
For the first time since September 2020, Apple was able to re-enter bear territory, which is defined as a 20% correction to the high
The question, is this the time to buy Apple due to weakness or should investors wait for a steeper decline before committing to the stock?
Let’s start with the audience: what do Twitter users think is the best course of action here? I asked the question below. Right from the start, the answers had been largely bullish, with more than half of the 150+ responses pointing to a buy-the-dip opportunity
It helps to understand that, to my knowledge, the pressure on Apple stock does not appear to be related to company fundamentals
I made this argument recently when I pointed out that the iPhone (half of Apple’s sales on the 2020 calendar) had an excellent performance last year, but the 5G super cycle in the smartphone segment is only just beginning that Story to tell
The new year will also be a good year for the Mac (almost 10% of sales in the 2020 calendar), as the M1 chip apparently helps to increase the demand for Apple PCs
Finally, I believe that services could double again within the next five years like between 2016 and 2020.This should be possible for two reasons:
Given solid fundamentals and unsurprisingly, it is reasonable to assume that Apple stocks will eventually make their way north again
Of course, it’s a lot harder to tell when this will happen and how far the stock will have to go before it recovers, but it still helps to look at history
Many investors may not know that Apple is no stranger to bear-like corrections at all. Since the company’s IPO in 1980, Apple’s stock price has remained 20% below previous highs 61% of the time – i.e., 61% of the time He Average of 6 out of 10 trading days
With the stock all bouncing back from its lows, investors betting on Apple’s weakness have ultimately taken advantage of it, while it’s hard to say that $ 120 apiece is a low point for Apple stock the potential long-term returns are likely to rise if stocks continue to fall
(Disclaimer: The author may be one or more stocks mentioned in this report The article may also contain affiliate links These partnerships do not affect the editorial content Thank you for supporting The Apple Maven)
I am the founder of DM Martins Capital Management LLC, a Napa-based hedge fund manager founded in January 2020. I am also the current chief researcher and portfolio strategist at the independent company DM Martins Research
World news – FI – Apple shares flirt with bear market: buy now?