Barry Ritholtz, the chief executive of business advisory firm Fusion IQ, predicted back in November that Apple (NASDAQ:AAPL) could drop to the $500 level in the next few months. Now that the iPhone maker, struggling after reports of lowered device demand and margin worries, is at that level, Ritholtz is the last person to be surprised, but he does have a warning for those predicting eternal doom for the company.
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The money manager, who invests in Apple and calls himself the company’s “fan boy,” said that he could see the stock touching as low as $350 based on technical indicators, though that scenario only held an “outside possibility” of coming true. In fact, at the moment the stock looked like it was setting up as a “bear trap” ahead of the company’s earnings next week, according to Ritholtz. “I’d rather not be short here,” he told Yahoo Finance’s The Daily Ticker. “I’m not excited about being long, but there’s such risk this thing could explode to the upside.”