Apple is Down Big This Week: Here's Why You Shouldn't Care

Shares of Apple (NASDAQ: AAPL  ) fell approximately 6.5% this week, and on one single day, the company lost $35B in market value. Apple's losses look even more dramatic when you compare its current price to its all-time high of $705 per share in September. But what caused the drop? In this video, Motley Fool analyst John Reeves discusses some of the opinions on why the stock fell recently, including thoughts on increased competition, and possible institutional rebalancing. But then he asks the bigger question: If the core investing thesis in Apple hasn't changed, and the fundamentals of the company are still best in class, do I really care about this recent downturn? At most, it represents an excellent time to buy.

There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and more importantly, your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

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  • Report this Comment On December 07, 2012, at 6:51 PM, dwilh51183 wrote:

    Apple By the Numbers: Why I'm Not Worried About Today's Selling

    0 0 0

    December 5, 2012

    Today, the Dow surged over 100 points while the Nasdaq fell in the red. Why is that? Well, the Nasdaq's underperformance is largely thanks to a 5% pullback in Apple Inc. (AAPL), which makes up a whopping 12% of the Nasdaq Composite.

    The fuss stems from speculation that the iPad could lose ground to the growing number of Android-based tablets on the market. According to IDC, Apple's market share is expected to decline from 56.3% to 53.8% in 2012, while Android tablets are expected to capture 42.7% of the market (up from 39.8%). By 2016, iPad market share is forecast to drop below 50%.

    But what many sellers are forgetting is that even if Apple gets a slightly smaller slice of the tablet pie, the pie itself is growing by leaps and bounds. Analysts are calling for 122.3 million shipments in 2012 and 172.4 million in 2013—that represents a 41% jump! So even with this extra competition Apple stands to profit handsomely from the tablet boom.

    And whenever we talk about Apple's growth prospects, we can't forget the iPhone. This quarter, analysts expect that 224.5 million smartphones will sell around the globe—nearly a 40% increase over last year. This is, of course, very good news for Apple, and here's why:

    Apple now commands 48.1% of the U.S. smartphone market thanks to the iPhone 5, overtaking the Android's 46.7% share.

    The iPhone 5 also pushed Apple ahead of LG among U.S. phone makers—it is now second to only Samsung.

    The iPhone 5 drives 13% of all iPhone web traffic—an accomplishment considering that the smart phone has only been out for two months.

    Apple plans to launch the iPhone 5 in 50 countries by the end of the month, including Brazil and Russia. Currently, the iPhone 5 is sold in 47 countries.

    So now that the company's supply problems have been resolved, analysts expect 46 million iPhones to sell this quarter—a huge jump from the 26.9 million iPhones sold last quarter. Fueled by iPhone 5 sales, total sales are expected to jump 17.8% this quarter. And that number should only increase in the coming months.

    To sum up, Apple Inc. is still a great buy, and I expect that it won't be long before those who sold off today rethink their decision.


    Louis Navellier

  • Report this Comment On December 07, 2012, at 6:53 PM, dwilh51183 wrote:

    Now that most of the tax selling is done, Apple probably will start buying back $10 billion worth of their own stock. Apple still has their stock buyback in place and should authorize , and it should happen soon

  • Report this Comment On December 07, 2012, at 6:55 PM, constructive wrote:

    Apple is Down Big This Week: Here's Why You Should Care

    It's pretty cheap, you should be buying shares.

  • Report this Comment On December 07, 2012, at 7:17 PM, baozebub wrote:

    I bought Apple stock because I thought it would be less risky. Being wrong has never cost me so much in my life.

  • Report this Comment On December 07, 2012, at 8:27 PM, FundamentalsMan wrote:


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