out of bounds by only an inch, nullifying an incredible catch in football.
While CEO Tim Cook described Apple’s results as “extraordinary” on the company’s conference call late yesterday, the simple fact remains that by several key measures the company grew less than analysts expected. The disappointment is tangible, triggering a sell-off that’s taken the stock to levels not seen in a year. But it is also tempting, given that shares are now down 35% from their all-time high of $705 hit just four months ago. “I think you got to hold your nose and buy here,” says Eric Jackson, founder of Ironfire Capital. “In the past, when Apple has gone on runs, it usually comes when there’s this mass negativity in the air like there is now.”
Certainly, not everyone agrees with Jackson, as no less than six different analysts have cut their outlooks or estimates or price targets so far today, bringing the median price target down to $647 from $792 in a matter of months. Jackson says the fear about Apple running up against “the law of large numbers” has been out there for about five years, but he concedes that he is ”just not in that camp” and would be looking to add to his position.
Related ETF: Technology Sector SPDR ETF (NYSEARCA:XLK).
You can see the full “Breakout” interview below:
Technology Select Sector SPDR (NYSEARCA:XLK)
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