Apple Inc (AAPL): Holiday Bounce to $700 Coming?

Apple Inc (NASDAQ:AAPL) stock reached its all-time peak of $705 a share in mid-September, just before the release of the iPhone 5. But ever since the launch, and even after the company released the new iOS 6, iPad 4 and new iPad Mini, the stock continued to fall and has dropped below $575 a share very recently – a drop of nearly 20 percent in about six weeks. But as the holiday shopping season starts to ramp up and Apple Inc (NASDAQ:AAPL) is recording decent sales numbers in the run-up, is the stock ready for a holiday rally? Should investors like billionaire fund manager Dan Loeb of Third Point be strengthening their positions and preparing for a return to $700?

In a word … maybe, but not for long. (OK, so that’s five words.)

Should this Concern Apple Inc. (AAPL) and Google Inc (GOOG)?

One analyst, Rich Ross, predicted this fall in the Apple Inc (NASDAQ:AAPL) stock, calling that the price would plummet to the $574 range. He told a magazine Web site that he had decent reason to believe it would happen. “Apple is at a great proving ground,” Ross said, “near its July lows and a support trend line that goes all the way back to June 4.” While he does see the stock rallying during the holiday season, he says the stock might get near the all-time high before receding right around the time of the January quarterly earnings release.

While he sees a run coming, Ross isn’t exactly on board with a short buy run on Apple Inc (NADAQ:AAPL). However, he also doesn’t see much more decline in the offing – like it might be bottoming out. “It’s not the worst chart I’ve ever seen; it’s not one you run around like Chicken Little yelling ‘the sky is falling,’” Ross said.

The bottom line, Ross said, is to stay disciplined and cautious. He sees Apple Inc (NASDAQ:AAPL) making a run, but he expresses worry about the overall fundamentals of the company, especially in the wake of the executive shakeup where top iOS architect Scott Forstall and Apple retail chief John Browett were relieved of their duties by CEO Tim Cook. What do you think about Apple stock now? Do you see a buy opportunity, or do you agree with Ross’ intimation that the fundamentals are questionable? Leave us your comments and let’s see who is smarter than Mr. Ross!

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!