The Polish Fading on Apple (NASDAQ:AAPL) Shares
Shares of Apple (NASDAQ:AAPL) dipped Monday flirting with correction territory following a report that the company had told suppliers to scale back shipments of parts for its upcoming iPhone X.
Digitimes reported that Apple suppliers were shipping just 40% of the components originally ordered for the premium phone, which goes on sale in November.
That added to concerns on Wall Street about demand for Apple’s new devices after the launch last Friday of the iPhone 8, a less expensive model than the iPhone X, drew smaller crowds than previous launches.
Some investors saw the soft iPhone 8 debut as a sign that customers were holding out for the iPhone X, which boasts an edge-to-edge display and will sell in the United States for $999.
Amid a broad selloff in technology shares Monday, Apple’s stock was last down 0.7%. It earlier fell as much as 1.8%, bringing its loss since a record high on 1 September to 9% close it correction territory.
Many investors define a correction as a 10% decliner. A stock in correction may be viewed as either a buying opportunity or as likely to fall further.
While the number of people queuing up outside Apple stores has dropped over the past several years with many buyers choosing to shop online, the weak turnout for the latest iPhone has partly been due to poor reviews.
Apple’s stock recently traded at 13.8X expected earnings, its lowest valuation since February, according to Thomson Reuters Datastream.
Over the past 2 years, Apple’s average forward PE/R (price-to-earnings ratio) has been 12.6X.
Apple did not respond to a request for comment.
|HeffX-LTN Analysis for AAPL:||Overall||Short||Intermediate||Long|
|Neutral (0.04)||Neutral (-0.17)||Neutral (0.02)||Bullish (0.26)|
Latest posts by Paul Ebeling (see all)
- The Street’s Key Stock Analysts Research Reports - September 18, 2019
- Asia: Gold, Crude Oil, Stocks, Commodities and Currency Pairs - September 18, 2019
- Gold’s Market Price Hanging in Place - September 17, 2019