Why Apple shares could rally up this week with bad news behind it. 3 things to note
Large dip buyers could be taking advantage of Apple's pull back this week with bets increasing that Apple's bad news is behindit. Bet are now increasing that Apple shares could likely stage a rebound this week, after they've dropped 13% from December with the stock in oversold and correction territory. Here are 3 things you need to know
Firstly, note that investment managers ‘dip buying' of Apple will likely pick up this week according to options in the market, with more bets Apple will rise back to $190-$200.
Also note that buying will probably also pick up with seasonality (end of quarter rebalancing). Last Friday the tape showed Deutsche Bank increased its stake in Apple, buying 7 million shares.
Apple $Apple(AAPL.US$ options are skewed with more bets of Apple to rally and head back toward $190-$200.
Also note that institutional buying is increasing…you can see DB's buy of 7 million Apple shares last Friday.
Secondly, the thinking is that Apple's bad news could be behind it. Last week Apple hit by a myriad of set backs.
o Apple was slapped antitrust fines on of 1.8 billion euros ($1.95 billion) in the EU over restrictive policy against Spotify Technology(SPOT).
o Apple has been hit by a bunch of lawsuits, from a$14 million lawsuit in Canada, accusingApple ofintentionally slowing down iPhones batteries as they aged.
o Apple's Chinese iPhone sales declined again. Broadly its worth nothing, Apple sales in China have been slowing from 2022 and account for 18.9% of Apple revenue.
o And Berkshire Hathaway $Berkshire Hathaway-A(BRK.A.US$ reduced its Apple holding last quarter by 0.06% to 100 million shares.
Thirdly, the market is awaiting news on Apple's AI focus after it abandoned its 10 year effort to move into EVs.
We have yet to hear details about Apple mega AI plans. Should Apple announce its AI push, which is probable, it would likely support Apple's shares. As we know, over the last several years, every time the word ‘AI’ is mentioned in an announcement a stock has historically rallied.
Apple shares appear oversold and in correction territory
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Moomoo Official Market Strategist
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那使子 : I've been clutching apples the whole time, but I've almost dropped them over and over again but haven't dropped them.
is it OK to keep holding it like this...