Markets

After Record iPhone 6s Sales, AAPL Stock Is a Steal

By Alyssa Oursler, InvestorPlace Contributor

Apple (AAPL) is being applauded in headline after headline Monday morning, but that applause hasn’t translated into tangible gains for AAPL stock. Instead, a difficult day for the market has weighed on shares, which have lost over 1.3% as of Monday’s afternoon trading.

What’s the good (but not quite good enough) news of the day? Well, the iPhone 6s and 6s plus — revealed earlier this month at the company’s annual event in San Francisco — just had their first weekend of sales.

And despite the fact that the new iPhones and their modest upgrades (although the company is marketing those improvements hard with its “Everything has changed” campaign) received a relatively muted reaction when first revealed, consumers were eager to get their paws on the latest Apple gadget.

During the first weekend alone, Apple pushed over 13 million units, which wasn’t just better than expectations, it’s a new record.

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Despite the lack of immediate stock movement from this metric, the general consensus is that the sales are a bullish sign for AAPL stock — and it’s hard to disagree. FBR & Co., for instance, pointed out that the 13 million figure didn’t just easily hurdle the consensus for 12 million, but blew away the 10.5 million to 11 million prediction coming from bears.

The sales also blew away the previous record of 10 million, set by the original iPhone 6 debut; although that figure doesn’t include China, which has been Apple’s Achilles’ heel of late.

Still, FBR & Co. believes Chinese demand is “white-hot,” while the firm crunched some numbers and estimated that even backing out Chinese sales, the year-over-year expansion represented “a Lebron-like performance.”

A Lebron-like performance is exactly what AAPL stock needs. Remember, Apple has posted just a 2% improvement since the start of the year, currently sitting around $113 in the wake of Monday’s slight drop. That’s almost 20% off the 52-week high of $135, although it is also a nearly 10% recovery from the recent low around $103.

Today’s struggles are a microcosm for the short-term outlook of Apple stock. Shares are attempting to gain momentum but will face resistance around their 50-day moving average of $115, while uncertainty about the broader market will also weigh on shares for the near future.

But savvy investors will see past the short-term.

Louis Navellier, for example, reiterated his bullish thesis on AAPL stock Monday, as he picked Apple for InvestorPlace’s Best Stocks of 2015 contest. He is currently sitting in fourth with a 4% return, dividend considered.

Considering that is about 20% behind the No. 1 pick, Rave Restaurant (RAVE), there’s a good chance Navellier will run out of time. But the rest of us don’t have an arbitrary year-end timeline for our investments.

Add it all up, and the record sales (and subsequent dip) confirm that the recent weakness represents an attractive entry point for folks with a longer time horizon.

The only prerequisite? Patience.

Alyssa Oursler is based in San Francisco and writes about technology, investing, gender and entrepreneurship. Her work has appeared on Forbes, Business Insider, MSN Money and more. You can follow her on Twitter here or check out her personal site here. As of this writing, she was long AAPL.

This article was originally published on InvestorPlace Media.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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