Tuesday, October 23

Apple shares tumble, but analysts still bullish

Shaw Wu, Sterne Agee senior technology analyst, thinks Apple's 10 percent correction makes it "right to get back in" the stock.

Shares of Apple have tumbled as much as 11.6 percent from their recent iPhone 5 high, but analysts remain bullish about the company’s long-term prospects.

Apple shares fell 2.3 percent in morning trading Tuesday, putting the stock in correction territory, broadly defined as when a share price has fallen more than 10 percent.

Apple’s shares began falling after they reached an all-time high of $705.07 on Sept. 21 -- the day the iPhone 5 was launched.

Despite the recent losses it’s worth remembering that Apple’s share price has been on a roll so far this year.

Apple moved above $700 for the first time ever on Sept. 18, and the stock is up an impressive 21.1 percent since hitting a recent closing low on May 17.

“In the near-term, there’s definitely some consolidation in the name,” Shaw Wu, technology analyst at Sterne Agee, told CNBC.

“Negative headlines out there, including Foxconn and minor complaints about the iPhone 5, are also causing some concern in the company,” Wu added. “Broader concerns with the economy are not helping either.”

Apple’s declining share price has also weighed on the broader market, as the company’s stock accounts for nearly 20 percent of the Nasdaq 100 index and almost 5 percent of the S&P 500 index.

Brian Marshall, analyst at ISI Group, is optimistic about the outlook for Apple’s stock.

“Fundamentals are moving in the right direction and this is one of those periods where we see a consolidation,” he told CNBC. “The stock continues to have legs so I think we’ll get up into $700.”

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