You're watching...
Raymond James Chief Investment Strategist Jeff Saut on the problems facing the tech giant.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- -- this chief investment strategist at Raymond -- James is with us now from saint Petersburg Florida.
One -- -- -- look at the Apple Stock chart that we were just looking at Jeff is that over and over here.
It continues to find support around a 500 dollar.
A level -- it's at 506 and change today what do you make of that.
That think that you do have support levels in between 450 and 500 bucks on the shares I mean.
What's happening I think -- had a right is no real surprise we downgrade I spoke to my analyst Tavis McCourt this morning.
We downgraded.
Apple in July of -- of last year from -- strong buy to -- outperform because you were getting slowing.
Growth and you basically gone from a hyper growth company to a more of just stay a balancing moderate growth because -- 125%.
Growth is still pretty.
Pretty strong but if you look at the tech sector in aggregate they always tend to over order parts going into a new product launch and then throttle back after the product -- so.
Travis doesn't think there's a whole lot of dire situations here and we still maintain our outperform in our earnings estimate what.
About -- so at this level you have it -- you could have a choice to make the all time high -- apple is 700 dial 705 dollars 70507.
On that's what a first of September so -- it's 50% retracement from that brings -- -- basically we re are now be exactly 507.
So what do you do is that an opportunity.
To sell -- -- -- -- even now -- the time to get back in would you tell investors on the on the Apple Stock.
Well as I said our our analysts had they outperform rating on it and from a technical analysts standpoint a 50% correction usually find some kind of technical support right slightly underneath 500 so from a short term -- intermediate term basis side -- concur with our -- with the outperform rating.
Because big picture some people look at and say but outside -- will we hear about as demand demand everybody wants an iPhone so they kind of starts at just to see the headline.
Does this say anything at all to you about the global economy or it's just -- a sign that apple is maybe it will different that it was a few years ago.
I think that's exactly right I think it's a more mature growth companies cinema hyper growth company.
They still according to -- have a 120 billion dollars on the balance sheet and growing that by about forty billion dollars plus a year.
So the downside should be somewhat muted below 500 dollars don't go crazy says -- sought.
On the on the Apple Stock precedent so you've -- assault on Jeff -- the talk is always thanks a lot.
Pleasure.
