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Ritholtz says the stock's precipitous fall has less to do with the recent complaints surrounding Apple products — specifically its highly criticized Maps app, which forced Apple CEO Tim Cook to apologize to consumers and investors in an open letter on the company's Web site — and more to do with dismal third-quarter earnings. Many investors and hedge funds are trying to lock in gains before the end of the year, and Apple has been one of the best-performing stocks over the past 12 months. (Apple is still up more than 40% since January)
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Even though Ritholtz has turned bearish on Apple, arguing that the stock could tumble below $500 a share, he says the stock is still "incredibly reasonably priced." But "don't buy it because you're looking for a 50% or 75% appreciation," Ritholtz notes. Apple may be going through a rough patch, but its products are still superior, especially in the smartphone space, he adds.