Manic market back to buying Apple -- at least for today

Cue the cliche about what a difference a day makes -- especially when we're talking about shares of Apple.

James Martin/CNET
One day after they closed at a five-month low, shares of Apple rebounded more than 1.6 percent in early afternoon trading as Wall Street decided the recent selling spree was an overreaction.

Since reaching its all-time high of $705.07 on September 21, the day the iPhone 5 became commercially available, Apple's stock has dropped about 24 percent.

Why the Friday turnaround? Take your pick:

  • Only a few weeks before the holiday season kicks into high gear, AT&T said its iPhone 5 supply situation is improving.
  • Separately, Piper Jaffray's Gene Munster said in a note that iPhone 5 supplies are improving both at AT&T and Verizon outlets. As a result Munster remains comfortable forecasting iPhone sales of 45 million between October and November.
  • China Telecom announced plans that it would start to sell the iPhone 5 either later this month or in early December.
  • Apple's shares started the day well below the $763-per-share consensus.
  • UBS put out a note on Friday encouraging investors to buy with a $780 price target. "With earnings momentum bottoming and near-term upside EPS surprises more likely, we continue to like the stock here," it said.
  • Doug Kass of Seabreeze Partners Management also said the selling spree was overdone. "At $536 a share, a discounted dividend model implies that the future growth rate in profits at Apple will be only about 5 percent. This is too low."
About the author

Charles Cooper was an executive editor at CNET News. He has covered technology and business for more than 25 years, working at CBSNews.com, the Associated Press, Computer & Software News, Computer Shopper, PC Week, and ZDNet.

 

Join the discussion

Conversation powered by Livefyre

Show Comments Hide Comments
Latest Galleries from CNET
ZTE's wallet-friendly Grand X (pictures)
Lenovo reprises clever design for the Yoga Tablet 2 (Pictures)
Top-rated reviews of the week (pictures)
Best iPhone 6 and iPhone 6 Plus cases
Make your own 'Star Wars' snowflakes (pictures)
Bento boxes and gear for hungry geeks (pictures)