Could Apple Shares Have Stabilized (NASDAQ:AAPL)

apple-icon-appleShares of Apple Inc (NASDAQ: AAPL) opened at $93 today an nearly immediately shot up to break $94 a share within the first hour. While the remainder of the morning was inundated with major trading action, the stock managed to reach its highest trading volume just after noon, when it traded at $94.75, closing at $95.01

And it appears that while there is a lot of activity on the stock, the range of movement is small and, it seems at least, Apple’s shares are now hovering around $93.50. This is slightly better than the 52-week low of $92 but far from the 52-week high of $134.54.

Heavy Apple stock activity is nothing new but on a tough market day—particularly with sagging oil prices—the steady growth of Apple could prove a bit protective for those investors who might be a little wary of other stock futures.

Overall, the S&P 500 is down 2%; similarly, the NASDAQ is down, overall, 2.5%. In addition, the typically reliable Facebook and Amazon are down more than 4% and Google is down 2%. Netflix, it seems, is the only one of these metrics which remains about even on the day.

And with numbers like this—especially this early in the year—many financial institutions are concerned about the US economy. Credit Suisse, for example, has [already] lowered its year-end S&P 5-00 target from 2,150 to 2,050 and a JP Morgan strategist cut his target from 2,200 to 2,000, just last week.   RBC Capital has also expressed concern over the future of the US economy.

Of all the high-profile tech stocks, then, Apple’s shallow range of movement could actually be a very good thing. After all, Apple (as well as other tech companies like IBM, Broadcom, and Hewlitt-Packard) offered what analysts called “impressive margin protection” during the 2008/2009 recession.
But this is a different market and, perhaps more importantly, Apple was still regarded as “The most valuable company in the world.” Google/Alphabet just stole this title from Apple for the very first. This has brought a little more criticism and concern onto the shoulders of Apple, so recovering from a poor market season could be a little more difficult than in previous recessions.

Consensus Ratings for Apple (NASDAQ:AAPL)

Ratings Breakdown:  2 Sell Rating(s), 10 Hold Rating(s), 42 Buy Rating(s), 1 Strong Buy Rating(s)
Consensus Rating: Buy (Score: 2.76)
Consensus Price Target:  $137.58 (46.33% upside)