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.)
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!