Keep an eye on Apple (AAPL).
After exploding from $145 to $170.30, the tech stock topped out, and pulled back for two reasons. One, the stock was overdue for a pullback from overbought reads on RSI, MACD, and Williams’ %R. Two, there’s a report that demand for iPhone 13 models are weakening.
However, Raymond James analyst Chris Caso called the report “ambiguous.”
“Historically, the best gauge of demand has been the production forecast, and whether that forecast is increasing or decreasing,” Raymond James analyst Chris Caso said, as quoted by Investor’s Business Daily. “The article doesn’t mention changes to the production forecast, but only that Apple has reportedly told suppliers that demand had slowed, which is a more ambiguous statement.”
The ambiguous report is also impacting Qualcomm (QCOM), which is down about $2 on the news, and Skyworks Solutions (SWKS), which is down more than $3 at the moment.
At the same time, Wedbush analyst Dan Ives just raised the firm’s price target to $200 from $185, with an outperform rating. All because he has “increased confidence” in the 2022 iPhone 13 growth cycle.
“The checks ‘continue to be much stronger than expected’ and Apple is now on pace to sell north of 40M iPhones during the holiday season despite the chip shortage headwinds,” Ives said, as quoted by TheFly.com. “The analyst believes the underlying iPhone 13 demand story both domestically and in China ‘is trending well ahead of Street expectations.’”
Ives also believes Apple could be a $3 trillion company in 2022.
So, we have one report saying iPhone 13 sales are slowing. A second report called that report ambiguous. And a third report has “increased confidence.”
Interesting. Let the weak hands shake out first. This Apple pullback may be temporary.
