Apple Shares Fall Following iPhone 6 Event, Goldman Sachs Reiterates 'Buy' Rating

Apple investors always seem to have a tough time figuring out how to react to news and events. Such is the case again following yesterday's unveiling of the iPhone 6, iPhone 6 Plus, and Apple Watch devices, along with some supplementary announcements. The initial reaction was to sell, and as investors hurried to unload shares, Apple's stock price dropped from $103 to $96 -- that translates into a $38 billion hit to the company's market capitalization.

Here we are a day later and Apple's stock price is sitting at $100.17 and climbing. So, should you sell your shares before fickle investors have another panic attack, or hold onto your Apple stock in hopes that it will keep climbing? Far be it for us to give financial advice, though if you're willing to trust investment firm Goldman Sachs, then not only should you hold onto your stock, but now's a good time to buy as well.

Apple Retail Store

"The iPhone refresh was by far the most impactful announcement for Apple's bottom line," analysts from Goldman Sachs wrote in a note to investors. They also predicted that the larger screen sizes will be "an important driver of improved growth in that segment," adding that the product launch was nothing short of "impressive."

Looking ahead, Goldman Sachs believes Apple will sell around 62 million new iPhones in the fourth quarter of this year and 205 million throughout all of 2015. As for Apple's share price, Goldman Sachs sees it reaching $115 within the next year, up from the $107 figure they had forecast before the press event. Goldman Sachs also reiterated a "buy" rating for Apple.

Via:  MarketWatch
Show comments blog comments powered by Disqus