After $200 billion selloff, Apple looks the most oversold in years

Apple shares have struggled mightily in 2024, and the ongoing weakness has the stock looking like it is the most oversold in years, analysts say.

Ryan Vlastelica for Bloomberg News:
‎

Shares of the iPhone maker are down 14% from a recent peak and have dropped 12% this year, compared with a gain of 7.42% for the Nasdaq 100 Index. Apple shares have been pressured by concerns over iPhone sales in China and a fine from the European Union.

The stock fell 0.3% on Wednesday, its sixth straight negative session. The 7.2% decline over that six-day drop has erased more than $200 billion in market capitalization.

“At some point this hate is going to be too much, and most oversold in six years seems like a good place to start,” Michael Toomey, head of TMT trading at Jefferies LLC, wrote in a note to clients.

Jefferies looked at the relative strength index of long Apple positions versus short positions in the Invesco QQQ Trust Series 1, the exchange-traded fund that tracks the Nasdaq 100. Based on this, “this is the most oversold AAPL/QQQ has been since early 2018.”

Bespoke Investment Group LLC wrote in a post on X that Apple is more than three standard deviations below its 50-day moving average, and that “it hasn’t been this oversold since March 16th, 2020 in the throes of the COVID crash.”

‎
MacDailyNews Take: Overwrought times like these are pure gifts for longterm Apple investors. We dream of sub-$150, even sub-%160. Regardless, accumulate.

I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful. – Warren Buffett
‎
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!

Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.

The post After $200 billion selloff, Apple looks the most oversold in years appeared first on MacDailyNews.