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This is what Apple investors need to do, one CIO says

Apple investors may be tempted to cut their losses after the company reported disappointing quarterly figures, but they need to be patient, Albion Financial Chief Investment Officer Jason Ware said Wednesday.

"Typically, what we see as we get into this next-gen product cycle is we want to be in the stock ahead of that, usually by a couple of months to enjoy those gains. We saw it on the iPhone 6, when the stock did very well in 2014," Ware told CNBC's "Power Lunch."

"To be an investor in Apple, you need to look ahead into the next product cycle. That might be the iPhone 7, coming this fall," he said.

Apple shares fell sharply Wednesday, amid light fiscal second-quarter earnings and revenue, leading several analysts to cut their price targets on the stock, including JPMorgan Chase's Rod Hall.


"We suspect a lot of the problem here is macro. In the discussion yesterday, Apple highlighted macro weakness. We think there's been a deviation to the negative side in consumer demand here," Hall told CNBC.

He lowered his price target on Apple to $125 from $141.

"I think you could see the shares continue to trade off a little bit here. You're kind of in a gap of information here through the summer. It looks like macro is deteriorating a little bit here, and we don't have any new products to talk about."

Apple's stock recently fell back into bear-market territory — down at least 20 percent from its 52-week highs — and is down 7 percent in 2016.