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Apple Stock Heading to $580: Tim Seymour

Wednesday, 24 Oct 2012 | 5:27 PM ET

The bar has been raised too high for Apple ahead of quarterly earnings and could disappoint investors, Tim Seymour of EmergingMoney.com said Wednesday on CNBC.

On "Fast Money," he called out Apple CEO Tim Cook's revelation this week that the company recently sold 100 million iPads. In order to boost Apple stock, Seymour said, the company would need to sell in the neighborhood of 200 million iPads next year.

Apple Stock Heading to $580: Tim Seymour
The bar has been raised too high for Apple before quarterly earnings, says Tim Seymour of EmergingMoney.com.

"It's not a valuation question. It's an overcrowded trade, where it's show-me-now, and there's not much to show them," he said. "I think the stock goes to down to $580 before you get good support."

(Read More: Are the Best Days Over for Apple's Stock?)

Drakon Capital's Guy Adami said that the stock could be offering an opportunity.

"If you're looking for an entry point into Apple, it's giving one in the form of $610, understanding that anything can happen post-earnings," he said.

Simon Baker of Baker Avenue Asset Management wasn't bullish, either.

"I think it will be difficult for Apple to hit $700 before the end of the year, and I think people are just getting Apple fatigue right now," he said.

Earlier on "Halftime," Rosecliff Capital's Mike Murphy said he had sold puts on Apple.

"With all this negativity that's priced into it here, we expect a positive reaction on the earnings call," he said. "The stock's been sitting in this $620, $625 range the last few days, and as long as it's there, I'm good. I'm flat on the position."

OptionMonster.com's Pete Najarian was a buyer.

"I'm still long the stock. I still like the stock. I think their numbers are going to be impressive," he said, praising the iPad Mini. "They're getting into a category that makes a lot of sense."

Trader disclosure: On Oct. 24, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long SBUX; Tim Seymour is long CHL; Simon Baker is long WFC; Simon Baker is long NFX; Simon Baker is long GLW; Brian Kelly is long SMH; Brian Kelly is long EWT; Brian Kelly is long SPY PUTS; Brian Kelly is short EWA; Brian Kelly is short XLF; Brian Kelly is short XLV.

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  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

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