What happened
Despite the Nasdaq turning the slightest shade of green today, shares of tech stalwart Apple (AAPL -0.81%) dipped in afternoon trading. As of 2:30 p.m. ET, the Naz was up a fraction of 1% -- but Apple stock was down 2.2%.
Don't expect that to last very long.
Image source: Getty Images.
So what
On the one hand, yes, some of the Apple news today is not great. As TheFly.com reports, Bank of America shaved $15 off of its price target on Apple stock this morning. Citing both supply chain and macroeconomic (i.e., inflation and interest rates) headwinds, BofA warned that Apple's valuation multiple is getting compressed.
On the other hand, though, BofA also said that there are now 1.8 billion iPhones out there in the world, hinting that this huge "installed base" bodes well for sales of services, and of replacement iPhones, and of other Apple merchandise, going forward.
Now what
Speaking of which, that brings us to the other positive Apple news today. Bloomberg just reported that Apple's augmented and virtual reality headset -- still just rumored to be in development as recently as December -- has now advanced to the point that Apple was able to present a prototype to its board of directors for review.
Details remain sparse at present -- how much the device will cost, and precisely when it might go on sale, for example. But the fact that Apple has presented the device to its board for sign-off suggests that the new device could come to market soon, and even high price tags haven't done much to dent the popularity of Apple's iPhones and iWatches. (The opposite is more accurate, as consumers view them as prestige products.)
With Apple shares down 24% since the start of the year, valued only about 10% above the average P/E ratio on the S&P 500, and pegged for 12% long-term earnings growth, buying Apple stock right before it introduces an exciting, brand new product category might not be the worst idea I've ever heard.
