Apple Is Down 6%: Here's Why You Should Stop Panicking

Shares of Apple  (NASDAQ: AAPL  ) fell by 6% today, and as one of the most closely watched stocks on the market, any move by Apple shares is going to have a lot of analysts immediately pretending to know what caused it. In this video, Motley Fool tech and telecom bureau chief Eric Bleeker addresses one Norwegian analyst's perspective that Apple's "cycle of vogue is ending." Eric explains how Apple's superior pricing power and supply chain, its low cost percentage for research and development, and its large percentage of users who intend to upgrade to the next iPhone all suggest that there isn't a shred of evidence for this viewpoint. Ignoring Apple's rock-solid fundamentals and attributing its success to a fad that is on its way out is exactly the kind of wrong-headed thinking that costs investors money.

If you're looking for answers on whether Apple's rally has run out of steam, Motley Fool senior technology analyst Eric Bleeker has created an in-depth report named "Is Apple's Epic Run Over?" which dives deep into the storylines driving Apple's sell-off. The report is a free update to our premium research report on Apple. To get instant access to our latest thinking on Apple, simply click here now.

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  • Report this Comment On December 05, 2012, at 6:10 PM, VickieDayton wrote:

    The analyst who predicted Apple is in the midst of an epic fail wasn't convincing and it's amazing that so many investors have fallen for his line of reasoning, if that is indeed why the shares were pressured the past two days. Apple's metrics are incredible and if you applied them to any other company in the NYSE, that company's shares would be soaring. It's 12-month forward PEG is 0.55! The analyst's conclusions amounted to little more than a plausible narrative, which is a level of understanding available to five-year-olds. Just ask a toddler to explain why the sun rises, he'll come up with a plausible narrative almost instantly. Just don't ask him to back it up with facts.

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