Apple has had the luxury of great news flow forever. New and improved products are always coming and it seems that with every announcement (or just the rumor of it) the stocks trades higher. $AAPL has been in a news vacuum since it reported earnings a short while back. That coupled with a brutal market has resulted in about a 100 point drop.
The planet was watching theta 550-555 level as support and it broke like a hot knife through butter yesterday. Einhorn mentioned that he though $AAPL deserved a higher multiple at about 3:30 PM yesterday, the stock bounced off the lows, but then erased that gain in the after market.
Bloomberg just reported that hedge funds accounted for one third of all the selling in $AAPL stock in the first quarter. So what’s up next for AAPL in terms of an “event”?
China Mobile $CHL may soon offer the iPhone. The chairman of China Mobile has confirmed this. This isn’t breaking news, but it will be interesting to see how the stock reacts if a deal gets done.
Compatibility issues between the iPhone and China Mobile’s 3G network mean that currently Apple’s handsets only work on the much slower 2G service.
The problem could be resolved with the launch of the next iPhone, rumored to happen this summer, and when China adopts the 4G standard.
Catalyst needed.