Loup's Gene Munster Explains The Slide In Apple Shares: 'It's As Simple As That'

Zinger Key Points
  • Gene Munster says unknowns surrounding Apple iPhone deliveries and guidance caused a 15% selloff in the stock.
  • "I think the guidance for March is actually going to be somewhat upbeat," Munster says.

Apple Inc AAPL shares hit new 52-week lows this week and dropped alongside temperatures since the start of the month. Loup Funds' Gene Munster had a simple explanation for Apple's long winter slide

"It's market jitters, it's as simple as that," Munster said Thursday on CNBC's "Squawk Box."

What To Know: Apple shares faced significant selling pressure in recent months largely due to iPhone production concerns as the company continued to battle supply-chain challenges in China as a result of prolonged COVID-19 restrictions.

Munster previously said the Cupertino-based company could lose up to $2 billion a week amid the shutdowns and other analysts indicated Apple could miss estimates by 16 million units this year.

But as the stock continued to fall, it appeared investors were not only concerned about deliveries in the current quarter but also anticipated soft guidance for the company's March quarter, Munster told CNBC.

"That unknown has pressured the stock 15%," he said. 

Check This Out: 3 Catalysts For Apple Stock In 2023 — First 'Major New Product' Launch In 8 Years?

Why It Matters: Investors were selling Apple shares on the potential for continued iPhone delays into next year, but delays showed the company can't keep up with demand and those deliveries were likely to be pushed into the March quarter, Munster said. 

Furthermore, Apple supplier Taiwan Semiconductor Manufacturing Co. Ltd. TSM reported 47% revenue growth in October and November, he said. 

"That's highly correlated to iPhone growth. That suggests that they will exceed the estimates for the December quarter," Munster said.

Investor concerns should have moderated given the continued demand for Apple products and TSMC's strong growth, but that didn't happen, he said.

"Which tells us that there is something bigger abrew with these investors and I think it is those jitters about the March guidance," Munster said. 

"Unfortunately for Apple investors, they're going to have to wait until we get that guidance ... I think Apple is going to be fine here. I think that their results for December are largely going to be in line. I think the guidance for March is actually going to be somewhat upbeat."

Munster told CNBC Apple is his "favorite stock" for the long term. 

See Also: Apple Hits Fresh 52-Week Low, Here's A Look At Recent Price Target Cuts By The Most Accurate Analysts

AAPL Price Action: Apple has a 52-week high of $182.94 and a 52-week low of $125.87. 

Apple shares are up 3.13% at $129.09 Thursday morning, according to Benzinga Pro.

Photo: courtesy of Apple.

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