Apple Inc. (AAPL): Will The Stock Tumble Below $400?

Another Android based threat is the arrival of the Samsung Galaxy S4. The new smartphone from the world’s largest manufacturer of wireless phones is definitely likely to put pressure on Apple. While Apple reclaimed the top spot over the Galaxy S III after the iPhone 5 was released, Samsung had temporarily beaten Apple Inc. (NASDAQ:AAPL) on its home turf. Samsung continues to make inroads, taking aim at Apple in various ways — another new development is the new retail locations that Samsung is introducing.

Probably the biggest risk factor for Apple Inc. (NASDAQ:AAPL) shares is the direction of the overall market. While each of the major indexes has been flirting with progressively higher all-time highs, a correction could easily pull Apple shares below $400. The company’s earnings release at the end of this month has dramatic potential as well, not because the numbers won’t be strong, but because Apple shares tend to react poorly to anything other than perfection — a mere 47 million iPhone 5s sold.

With this marking the first earnings release since Apple shifted to “range guidance,” the Street is less certain what to expect. Any perceived weakness will probably be punished, making $400 per share quite reachable. Ultimately, the stock still carries strong fundamentals at a very attractive price, but near-term forces are a matter of concern. I maintain the belief that you’ll see $400 before $500.

The article Will Apple Tumble Below $400? originally appeared on Fool.com and is written by Doug Ehrman.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple, Facebook, and Google.

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