Apple Stock (AAPL) Enters Correction Territory – Is NOW a Good Time to Buy?

Earlier this year — amid the hysteria of Apple’s milestone, becoming the world’s first trillion-dollar corporation — we published an editorial outlining seven reasons why we think it’s a great time to buy shares of the iPhone maker’s stock.

To be sure, Apple, Inc. (NASDAQ: AAPL) has historically been one of the best-performing stocks among the big tech-sector juggernauts — Alphabet (NASDAQ; GOOG), Microsoft (NASDAQ; MSFT), etc. 

Rags to Riches

From its humble beginnings as an IPO at just $22 per share back in December, 1980 — to its highest, all-time high of $232.07 per share just two-months ago — AAPL has ridden a roller coaster of ups, downs, and countless share-per-share splits — but has ultimately enjoyed a gradual ascension, over the past 38-years, to its current trading price of ~$179 per share.

While reasons to invest in AAPL abound, consider that the Oracle of Omaha, himself, has snatched up an estimated 220+ million shares of AAPL through his investment firm, Berkshire Hathaway — and, if given the monetary means, Warren Buffet confirmed he would even snap-up the Silicon Valley tech-giant in its entirety. 

Of course, while Mr. Buffet is just a couple hundred-billion dollars short of that goal, his sentiment nevertheless speaks volumes about the perceived value, perks and prestige of owning AAPL — not the least of which are quarterly dividend payouts.

Apple Takes a Bite

But, amid the tech-giant’s recent refresh of major products including the 2018 iPhone XS, XS Max, XR, iPad Pro and Apple Watch Series 4 devices, we’ve witnessed something rather interesting and, suffice it to say, peculiar, happen.

If you’ve been following along with us, then there’s a good chance you’ve seen some of the recent reports suggesting that Apple’s latest iPhone XS and XR handsets might not be selling as well as the company expected.

Multiple, increasingly dismal reports have corroborated that Apple’s already gone ahead and slashed its previously-placed iPhone XR orders by as much as a third — at least through the remainder of 2018.

And while some analysts are optimistic that orders and shipments will pick up again, perhaps come the new year, there’s no denying the recent barrage of negative publicity and skittish analyst reports have already done their damage to AAPL on Wall Street.

Back on November 1, for example, AAPL closed at its 30-day high of $222.22 per share. But, as of the closing bell on Wednesday, November 28, shares were up-for-grabs at just $180.94 apiece, representing a dramatic 19 percent drop, overall, within the past few weeks alone. 

And that’s not even factoring in the day-to-day volatility, which at one point saw AAPL shed a whopping 24 percent off its Market Cap before recovering slightly in the last few days.

Couple these uncertainties, too, with the fact that Apple recently announced it will henceforth refrain from sharing vital iPhone sales figures during its quarterly conference calls, and there’s no wonder some investors and analysts are feeling skittish about the company’s imminent (and longer-term) outlook.

But are these concerns actually overblown, as some analysts have suggested? 

Will Apple’s historically market-defying stock continue to rise and fall? Or will it face pressure from the crippling reality of declining iPhone and hardware sales as well as from the threat of increased competition in the tech space?

What about the ongoing Trade Wars between the U.S. & China, and specifically President Trump’s threat of a 10% tariff on iPhones and Apple computers? 

How will all of these seemingly uncertain variables ultimately play into AAPL’s bottom-line — both in the near- and long-term?

Unfortunately, only time will tell. But from a historical and strictly financial perspective — thinking also into the future, towards some of the tech giant’s upcoming breakthrough products like Apple Glass, Apple Car and the advent of Mixed Reality (MR) — even considering all the recent volatility, it’s never been a better time to think about buying and holding AAPL stock.