Apple, based in Cupertino, California, saw its shares increase by over 7.2% on the day Monday
November 20, 2012 – Apple shares advanced on Monday the most in nearly seven months. Wall Street analysts said the slide for two months by Apple’s stock was unjustified given their huge success in sales of their iPad and iPhone. Apple, based in Cupertino, California, saw its shares increase by over 7.2% on the day Monday. The stock closed at $565.73 in New York.
Apple has overhauled the majority of its products prior to the upcoming holiday shopping high season, but lost close to 20% of its market value since reaching a record high in September. It is trading at a discount of 8.4% to the S&P 500 index on its price to earnings ratio, after it has been valued for most of 2012 at a premium.
Even amid concerns from investors due to shortages of product, stiffening of tablet and smartphone competition and changes at the management level, demand for products by Apple has remained high and its slide in stock value was unjustified, said an analyst from Topeka Capital Markets.
One analyst said the Apple selloff over the last eight to nine weeks is insane given its blockbuster products, the long term growth potential and the ability of the company to distribute cash to its investors. The analyst has recommended people buy the stock and has the 12-month price at $1,111.
The sales of the iPad and iPhone 5 have helped to boost the company in this quarter and sales overseas in place such as China and other growing markets like Brazil, will help the company to sustain growth over the longer term.
Word, from suppliers for Apple in Asia, points to better than expected iPad and iPhone sales. Analysts have predicted 23 million iPads and 46 million iPhones will be sold in the fourth quarter of 2012.