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Gene Munster And Andy Cunningham Talk Apple's Stock

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Gene Munster And Andy Cunningham Talk Apple's Stock

Apple Inc. (NASDAQ: AAPL)'s stock closed lower on Monday for the eighth straight day – an event that hasn't occurred in nearly 20 years. However, volatility in Apple's stock isn't particularly new to investors and traders who have been paying close attention to the charts over the years.

CNBC's Jon Fortt pointed out during Tuesday's edition of "Squawk Alley" that since late 2011, shares of Apple experienced "swings."

"If you believe in Apple when its gone way up then you believe too much," Fortt said. "If you are dumping Apple when it has gone way down then you dumped too soon."

Related Link: Apple Closes Lower For Eighth Straight Day, Marking A Nearly 20-Year Record

He continued and asked the segment's guests, Andy Cunningham of Cunningham Collective and Gene Munster of Piper Jaffray, if the recent move in Apple's stock is an "overreaction" or merely consistent with the stock's historical volatility.

Cunningham answered that the recent decline in Apple's stock is indeed an overreaction, especially for a "cult company" with such "passionate followers." She added that as a company, Apple merely keeps on becoming larger given new opportunities in international markets.

Munster offered a somewhat different take and suggested Apple should eye acquisitions as new avenues of growth. He singled out a company called Magic Leap that is active in the augmented reality space.

The analyst also revisited his thesis that Apple should acquire Tesla Motors Inc (NASDAQ: TSLA). He added that Apple is a "designer" and Tesla is a "manufacturer," which could create an "M&A rich" entity.

Finally, Munster stated that an acquisition in content won't solve Apple's growth problems or solve its stock's volatility issues.

 

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