Can Apple Stock Repeat This question haunts Apple stock on a daily basis. Investors are unsure about what to expect from AAPL stock now that smartphone sales are slipping across the board, particularly in China. After all, Chinese sales were supposed to provide the next big tailwind for Apple stock.
However, China hasn’t been the knight in shining armor that Apple stock bulls hoped for. The share price may have recovered from its 2016 blues, but I remain skeptical that Apple can achieve a repeat performance of the last 10 years. For one thing, the great Steve Jobs is gone.
They brought billions of dollars into the firm, but it scarcely mattered because Apple was a victim of its own success. Even billions of dollars in new revenue were a drop in the bucket for the world’s richest company, so the price of Apple stock began to stagnate. The company needed an “iPhone-level” success story to repeat the gains of the last decade, but none were on the horizon.
The grim reality of this situation had investors primed for a bearish turn on AAPL stock. In fact, you could say that China’s slowdown was the straw that broke the camel’s back. Weak numbers from the Asia Pacific region cost AAPL stock nearly one-fifth of its market value.
Will the Bullish Apple Pattern Repeat? Watch This Technical Level
Apple (AAPL) stock broke below a two-year uptrend line in July 2015, quickly retracing 50% of the previous rally move. It then began consolidating in a large triangle pattern on the weekly chart, and a break above that pattern downtrend line initiated this year’s rally.
The process is repeating, and Apple stock is now poised at a second pattern resistance level. The integrity of that level could determine the intermediate-term direction of the stock price.
Additionally, Apple is a holding in the Action Alerts PLUS charitable trust portfolio, which is managed by TheStreet’s Jim Cramer. Along with Research Director Jack Mohr, Cramer wrote to subscribers on Friday to reiterate their $130 price target on the stock.“Apple is a name to own, not trade,” Cramer and Mohr commented. Even when the shares sink, they said, “We remain content in our long-term view, a thesis where smartphone dominance is buoyed by strength and continued growth in Services.”