Investors found further reason to dump shares of their once-darling Apple on Monday after a report raised concerns over demand for the iPhone 5.
Apple stock briefly dipped below $500 for the first time since February after Japan's Nikkei financial news service and The Wall Street Journal reported that the tech giant cut orders for parts on its iPhone 5 due to weaker-than-expected demand. According to the reports, Apple has asked Japan Display, Sharp and South Korea's LG Display to cut supplies of LCD panels in addition to other iPhone components in the first quarter.
But UBS and a handful of other firms noted that the report appeared to be old news, saying the article cites a notification from the company to suppliers last month. UBS has a "buy" rating on the stock with a price target of $700 a share.
"The stock appears to be a battle between peaking growth and margins and a low valuation," UBS analyst Steven Milunovich wrote in a note. "Momentum tends to win out in tech, and the stock remains under pressure." (Read More: Yoshikami: Loving Apple Stock Is a Mistake )