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Apple is left behind in the stock rally

Apple hasn't been able to follow the markets higher — leaving investors to wonder what's next for the tech giant.

The Dow Jones industrial average and the S&P 500 broke all-time intraday highs this week, as employment data and Japan's monetary stimulus boosted stocks out of the post-Brexit rout.

But in the past 12 months, Apple's stock has fallen more than 22 percent.

Colin Gillis, senior technology analyst and director of research at BGC Financial, said on CNBC's "Power Lunch" that the technology company is positioned to keep on sliding.

"The smartphone dynamics are slowing down," Gillis said Tuesday. "It was a wonderful run, but they haven't done anything except for incremental improvements, and that's finally caught up to them."

But Jason Ware, an Apple shareholder and chief investment officer at Albion Financial Group, said the lagging performance is to be expected, given Apple's big price run-up going into 2015.

"We don't think they need to reinvent the wheel or have some big, new hot category that no one's thinking about in order for this stock to have good returns going forward," Ware said Tuesday. "Over the shorter run, we've been cautious. ... This quarter's not going to be great, but we're looking a out little bit further."

More on Apple's business, including key iPhone sales, will be revealed when the company discusses earnings on July 26. Ware said he's bullish about the long-term prospects.

"Apple's continued to innovate over the past many, many years and we don't see why that won't continue," Ware said. "They have a lot of brand equity, they've got a new iPhone lineup coming out at the end of this year. We're probably going to see another relaunch — and a more revolutionary relaunch — next year."