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Apple Stock Oversold; RBC Sees Buying Opportunity

  Apple ‘s ( AAPL ) recent stock slide is an overreaction to the company’s disappointing March-quarter earnings report and could spell a buying opportunity, RBC Capital Markets analyst Amit Daryanani said in a research report Sunday. Before Monday, Apple shares had fallen in 14 of the last 16 trading sessions and were down 17.3% since April 14. Apple stock was up nearly 1%, near 93.50, in morning trading on the stock market today . Daryanani reiterated his outperform rating on Apple stock, with a price target of 120. “Investor feedback on Apple post-earnings call is skewed negative,” Daryanani said. “But we think the stock is oversold and should see a healthy bounce from here.” Apple stock has come under “severe pressure” since its fiscal second-quarter earnings report on April 26, he said. “There has been increased investor interest especially at current levels as investors are trying to gauge if the stock is near a bottom,” Daryanani said. “Our perspective remains — stock is oversold and valuation should provide support at these levels.” For fiscal Q2, Apple posted its first year-over-year sales decline since 2003 and first-ever drop in iPhone unit sales. For the current Q3, Apple is targeting sales of $42 billion, down 15% from the same period last year. Apple’s iPhone sales are slumping because of tough comparisons to the huge iPhone 6 upgrade cycle and slowing smartphone sales overall. Bears on Apple stock say iPhone replacement cycles will be extended and that the upcoming iPhone 7 won’t be compelling enough to spur upgrades. They see Apple struggling in China and profit margins heading down. Bulls on Apple stock say iPhone growth will accelerate over the next few years and services revenue, including App Store and Apple Pay, will continue to grow rapidly. Also, new products, such as a rumored Internet TV service, could provide a lift to Apple over the next five years, Daryanani said. RELATED: Apple Stock Hits 2016 Low Amid Doubts About Its Future Apple Watch Still Preferred By Dudes; Fitbit Liked By Ladies

Apple Stock Hits 2016 Low Amid Doubts About Its Future

Apple ( AAPL ) CEO Tim Cook should keep CNBC host Jim Cramer on speed dial. The only day that Apple shares have risen during the past two weeks was the day after Cook appeared on Cramer’s financial news show “Mad Money.” Cook reassured investors on the May 2 show that Apple’s business is healthy and has a great future. His calming appearance on the show stopped an eight-day losing streak for Apple stock. Not everyone was swayed by Cook’s comments. Chamath Palihapitiya, CEO of venture capital firm Social Capital Partnership, told CNBC that Cook’s television interview was “like human Ambien. I mean, it was pretty boring.” Palihapitiya criticized the Apple boss for leaving so much money “rotting” on its balance sheet and spending more money on its new campus than on research and development, Business Insider reported . Apple ended the March quarter with $233 billion in cash and securities. Apple stock hit a 2016 low of 91.85 in intraday trading on the stock market today . Apple shares ended the regular session Friday down 0.6%, at 92.72. Apple stock has fallen for 14 of the last 16 trading days. Apple shares have been hammered by a downbeat March-quarter earnings report and the perception that the company is lacking innovation. In its fiscal second quarter, Apple reported its first year-over-year sales decline since 2003 and first-ever drop in iPhone unit sales. Apple also is facing slowing sales in China and growing interference by Chinese regulators. Cook is scheduled to travel to China this month to meet with high-level government officials, Reuters reported Friday . Last month, Chinese authorities shut down Apple’s online book and video services, following the introduction of regulations that imposed strict curbs on online publishing, especially for foreign companies, Reuters said. The next possible catalyst for Apple stock is not expected to come until June 13-17, when the company hosts its annual Worldwide Developers Conference in San Francisco. At WWDC, Apple is expected to unveil an overhaul of its Apple Music subscription service, 9to5Mac reported earlier this week . The Apple Music revamp will feature a redesigned user interface, simplified features and several new features such as adding song lyrics. At the conference, Apple also is expected to announce new versions of its Mac and Apple Watch operating systems.

Huawei P9 Imitates Apple: ‘New Dog With Old iPhone Tricks’

Chinese Huawei’s P9 is a “new dog with old iPhone tricks,” beating Apple ( AAPL ) to the smooth-backed punch, but including the usual chip suspects — Broadcom ( AVGO ), NXP Semiconductors ( NXPI ), Skyworks Solutions ( SWKS ) and Texas Instruments ( TXN ). But the iFixit teardown of the P9 smartphone did little for Broadcom stock was down a fraction in late-afternoon trading Friday, while NXP and Skyworks were both up a fraction. Texas Instruments stock, however, was up 1% on the stock market today . The Huawei P9 looks familiar , iFixit wrote, wondering, “just how far did Huawei go to imitate, and perhaps surpass, the iPhone?” IFixit notes the Huawei P9 camera is embedded within the body — as opposed to the bump in the iPhone 6S. Apple suppliers fill the inside of the Huawei P9, but their functions can vary from the iPhone 6S. Samsung supplies both — but it has a flash-memory chip inside the P9 as opposed to a RAM (random access memory) offering within the 6S, says iFixit. Huawei tapped SK Hynix for its RAM. Apple used Toshiba for its 6S flash memory. Texas Instruments supplied a fast-charging chip for the Huawei P9 vs. a power-management chip for the Apple 6S. And Huawei’s audio codec by HiSilicon is mirrored by Cirrus Logic ‘s ( CRUS ) chip inside the Apple flagship. Broadcom provides two chips for Huawei as opposed to a single chip for Apple. NXP, a single chip for the P9 and two chips for the 6S. The Huawei phone has three Skyworks chips vs. two Skyworks power amplifiers within the iPhone 6S. Huawei’s and Apple’s flagship phones both scored a 7 out of 10 on iFixit’s scale of repairability.