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Apple Stock Briefly Falls into Correction Territory

Tuesday, 09 Oct 2012 01:21 PM

By Forrest Jones

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Stock of tech giant Apple, whispered by several analysts to become a $1 trillion company one day, briefly slid into correction territory Tuesday, a condition associated with a 10 percent decline from its recent high.

Apple's shares traded as low as $623.55 at midmorning, down more than 11 percent from an all-time intraday high of $705.07 on Sept. 21, the day the iPhone 5 was launched.

However, the shares rebounded to end at $635.85, down less than 1% on the day and just under 10 percent from the September high.

Though the company sales are booming — Apple made $40 billion in profit over the past 12 months, up 55 percent from the previous 12 months — concerns over difficulties replacing the late Steve Jobs and a decision to replace Google maps with unpopular Apple versions have investors nervous, according to USA Today

Still, analysts are saying now may be the time to buy.

"In the near term, there’s definitely some consolidation in the name,” Shaw Wu, technology analyst at Sterne Agee, told CNBC.

“Negative headlines out there including Foxconn and minor complaints about the iPhone 5 are also causing some concern in the company. Broader concerns with the economy are not helping either.”

Workers at a Foxconn plant have gone on strike to protest working conditions on the iPhone 5, though long-term, the company looks solid.

“With a 10 percent correction, it’s right to get back in,” said Wu.

“When [Apple] does send out the [iPad Mini] invite, the stock will rally…Also, it’s interesting that they’re reporting earnings on October 25, which is later than usual, so we believe they’re setting aside time for a potential special announcement.”

© 2013 Moneynews. All rights reserved.

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