Morgan Stanley Believes Apple Stock Already Has Bad News Priced In

The bar is set low for Apple’s earnings next Tuesday so Morgan Stanley says it’s a good time to buy the stock.

“We believe the recent pullback is an attractive entry point given upcoming services launches and shares already pricing in extremely cautious iPhone replacement cycle and average selling price headwinds,” the bank’s analyst Katy Huberty said in a note on Friday.

Apple’s stock has plummeted more than 30 percent over the past three months. Shares of the iPhone maker took a huge hit when it slashed revenue guidance by 8 percent on Jan. 2, blaming the slowdown on weaker sales in China. The stock tanked 15 percent on that day.

Morgan Stanley said the Wall Street and buyside investors have already lowered their expectations for Apple’s December numbers following the guidance, so next week’s numbers will unlikely tank the stock further. All eyes will be on any forecast for the current quarter.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza