Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Apple Climbs; Topeka Calls Share Sell-off "Insane"

By Associated Press - Nov 19, 2012 at 1:54PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

After hitting an all-time of $705.10 on the day the company launched the iPhone 5, Apple's stock slumped into correction, and then into bear territory, down nearly 21 percent from that September high.

NEW YORK (AP) -- Shares of Apple ( AAPL 3.55% ) jumped nearly 6 percent Monday, with one analyst calling a two-month sell-off in shares of the most valuable company on earth "insanely insane."

After hitting an all-time of $705.10 on the day the company launched the iPhone 5, Apple's stock slumped into correction, and then into bear territory, down nearly 21 percent from that September high.

Topeka Capital Markets analyst Brian White, who sees insanity in the stock plunge, believes that the sell-off over the past eight weeks is overdone. He cites new "blockbuster" products for the holiday season -- including the iPad Mini -- as reasons for buying the stock. He thinks Apple could grow its earnings per share at a rate of 20 percent to 30 percent per year over the next five years. That's based on the company's low market share in mobile phones and PCs, "combined with growth opportunities in tablets and new potential areas such as Apple TV."

That said, the Cupertino, Calif., company warned late last month that the costs of making new gadgets would cut into profit in its holiday quarter. On the same day, the company fell short of Wall Street expectations for the second quarter in a row -- something that hasn't happened in more than a decade.

Monday's increase is on track to become the biggest one-day gain since May 21, when the stock closed up 5.8 percent at $561.30.

Shares of Apple rose $30.45, or 5.8 percent, to $558.13 in early afternoon trading Monday. Even with the gain, the stock is down nearly 21 percent from the record high of $705.10 struck on Sept. 21.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
AAPL
$171.18 (3.55%) $5.86

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
633%
 
S&P 500 Returns
140%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/08/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.