Apple is a buy at $134 but could still decline further to $119

Apple Inc. (NASDAQ:AAPL) has been bleeding. The share price is currently at $134. Though the price chart shows appreciation for the week, our analysis shows that bears are in control. Valuation could drop to $119.

Apple is a stock of desire for many investors. The technology giant succeeded in becoming a household name due to its innovations. In the past, the company’s value was driven by iPhone sales. While the iPhone remains an important value contributor, Apple looks to other innovative value drivers.

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Apple services including music and TV are considered important sources of value. In the recent past, the company beat Netflix in the segment. However, the no-moat segments may not be able to support the brand in the long term. Investors will be looking for new innovations by Apple, including what the new iPhone brings.

Our analysis considers that Apple is worth accumulating. At the price of $134, the stock is worth holding. Investors are cautioned that in the foreseeable future, the stock could still shed value.

Apple could still lose to $119

Technical analysis shows that Apple might still lose more value to $119. That would send the stock to the oversold region, after which it would start gaining gradually. Currently, the stock is trading at an RSI of 36.38. The downward pressure on the stock comes mainly from the bear market.

Summary

We recommend buying and accumulating Apple as a long-term investment. Though the price may fall further from the current $134 to $119, the stock will gain in the long term. Innovation remains the key driver of value for the firm.

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