Fear is an Opportunity in Apple

Keep an eye on Apple (SYM: AAPL).

After a devastating drop from about $260 to $219.38, the stock appears to have caught strong support and is just starting to pivot higher. It’s also wildly oversold on RSI, MACD and Williams’ %R. From its last traded price of $223.83, we’d like to see an initial bearish gap refill at around $230. From here, we’d like to see it rally back to $260.

Helping, Goldman Sachs just reiterated a buy rating on Apple, believing the “market’s focus on slower product revenue growth masks the strength of the Apple ecosystem and associated revenue durability & visibility,” as quoted by CNBC.

It also looks like a great deal of negativity has been priced into the stock, as it nears earnings on January 30. Even analysts at Wedbush say the fear is overdone in Apple.

“We believe the panic and bear frenzy around Apple is way overdone heading into December earnings late next week on Thursday after the bell,” Wedbush analyst Dan Ives said, as quoted by Seeking Alpha. 

“Our recent Apple iPhone China checks are mixed to softer, but overall unit declines in the region we see as ‘manageable’ along with stronger US/Rest of World growth that should enable Cupertino to hit Street numbers for the December quarter. We also believe Apple should have a strong performance on the Services front which is the linchpin to the $4.5 trillion sum of the parts valuation we see over the next 12 to 18 months.”

Wedbush also reiterated an outperform rating on Apple with a $325 price target.

Ultimately, any sell-off in Apple is likely to be a buying opportunity as the tech giant has “the strongest and biggest consumer installed base in the world,” added the firm, as he believes the consumer AI Revolution “will go through the walls of Apple.”

In short, Apple weakness is an opportunity.

In April 2021, NVIDIA partnered with a tiny biotech to help power its AI-drug discovery platform.
Just 12 months later, its AI discovered a new treatment for multiple myeloma.
Just 12 months after that, Bristol Myers Squibb signed a $2.7 billion deal to have its AI-platform develop new drugs.

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