Apple (NASDAQ:AAPL) has had a devastating week in the market to say the least. The typical stalwart of the trading industry is coming off a rotten-to-the-core session of trading, down more than 12% over the past four days. This is following a fairly consistent drop since its all-time high in September of $705.07.
Many investors are wondering if this is the culmination of the downward spiral. While some signs point to more bad news, the markets have had a more optimistic sentiment with all three major U.S. markets closing the week up. Based off of that, one might conclude that the big Apple sell-off was just an over blown reaction to their mildly weak holiday earnings report. Apple’s quarter, in fact, was not that terrible, but with the ever-increasing expectations placed upon the iPhone maker it was no surprise the stock dipped as a result.
So while some might run the other direction, this significant fall might open up a buying opportunity. If you recall the experts were still saying to “buy” when AAPL was at $700. Even if it does not reach those heights again Apple does have the product line, popularity and more importantly the balance sheet to bounce back from this regression.
Disclaimer: B. Van Pelt holds a long position on AAPL at $600/share and is still long on AAPL as it stands now and may enact another long position in the near future.