Apple's Stock Is Down 10%Time to Buy?
Apple has tumbled nearly 10 percent from its all-time high amid a batch of negative headlines, but some analysts say investors should buy on the pullback.
The stock was down more than 2 percent earlier in the session, before recovering its losses. Still, Apple remains in correction territory, tumbling 10 percent from its all-time high of $705.07 hit on Sept. 21, the day the iPhone 5 was launched.
Despite the recent losses, Apple shares are still up an impressive 55 percent year-to-date, against a 15-percent gain on the S&P 500.
“In the near-term, there’s definitely some consolidation in the name,” Shaw Wu, technology analyst at Sterne Agee, told CNBC’s “Squawk on the Street.” “Negative headlines out there including Foxconnand minor complaints about the iPhone 5 are also causing some concern in the company. Broader concerns with the economy are not helping either.”
The stock’s decline also put a damper on the overall marketas Apple accounts for nearly 20 percent of the Nasdaq 100 index and almost 5 percent of the S&P 500index .
"Apple broke through the 50-day moving averageseveral times over the last year so that’s nothing new," said Brian Marshall, analyst at ISI Group. "'Fundamentals are moving in the right direction and this is one of those periods where we see a consolidation. The stock continues to have legs so I think we’ll get up into $700."
Meanwhile, Nomura initiated coverage of the iPhone maker on Tuesday with a "neutral" rating and a price target of $710.
"From 2014, developed market growth is seen slowing to single digits," according to a research note from Nomura. "We expect this transition to undermine margins...We thus believe that iPhone gross margins could contract and this drives our full-year 2014 earnings estimate to 12 percent below consensus."
Still, Wu said investors should take advantage of the pullback.
“With a 10 percent correction, it’s right to get back in,” said Wu. “When [Apple] does send out the [iPad Mini] invite, the stock will rally…Also, it’s interesting that they’re reporting earnings on October 25, which is later than usual, so we believe they’re setting aside time for a potential special announcement.”
While the company has not confirmed rumors of an iPad mini, recent reports claim that the company has alrady placed orders for more than 10 million units of the smaller model. (Read More: Can the Nook Compete in the Tablet Wars?)
Despite recent losses, Apple still remains at the top of the pack in terms of market cap, with a $150 billion lead over ExxonMobil .
—By CNBC’s JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
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