Is Apple Staring Down the Barrel at $580?
Apple (NASDAQ:AAPL) could end up disappointing investors because the expectations from the company are too high, EmergingMoney.com’s Tim Seymour said on Wednesday, adding that the stock could go down to $580 before moving back up. Seymour said Apple chief executive Tim Cook’s comments that the company had sold 100 million iPads had put pressure on it to reach sales of 200 million units next year in order to move stock positively.
“It’s not a valuation question,” he said on CNBC’s Fast Money. “It’s an overcrowded trade, where it’s show-me-now, and there’s not much to show them. I think the stock goes to down to $580 before you get good support.”
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Apple will announce its fourth-quarter earnings after the bell on Thursday. Earlier in the week, the company unveiled a range of new products, including the much-rumored iPad mini, but the share price did not see as much of an upward momentum as was expected.
Simon Baker of Baker Avenue Asset Management said he was also a doubter. “I think it will be difficult for Apple to hit $700 before the end of the year, and I think people are just getting Apple fatigue right now,” he said.
According to Drakon Capital’s Guy Adami, the stock possibly offered an opportunity after earnings on Thursday. “If you’re looking for an entry point into Apple, it’s giving one in the form of $610, understanding that anything can happen post-earnings,” Adami said.
OptionMonster.com’s Pete Najarian was a lot more bullish, saying he was continuing to be long Apple. “I still like the stock,” Najarian said. “I think their numbers are going to be impressive,” he said, referring specifically to the newly launched iPad mini. “They’re getting into a category that makes a lot of sense.”
Apple closed a little less than 1 percent up at 619.15 on Wednesday.
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