The Breakdown

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If Apple drops below $500 per share, it could be a screaming buy

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47147 full

There's a bunch of Wall Street trader stuff happening with Apple right now, as the company heads for the critical conclusion to the holiday shopping season. Analysts who follow the stock have been downgrading their price targets and trimming expectations for the company, which has been on an epic tear for the past two years, but which has also seen its share price collapse in recent months, from a high of more than $700.

This could yield some short-term volatility for AAPL. (That's the company's stock market ID.)

This morning, the stock fell below $500 in trading before the markets opened, before recovering to close at $520

Will it plunge again?

If it does, you might want to take Slate tech writer Farhad Manjoo's sage advice and buy a share of Apple, rather that wasting the money on an iPad. 

Why? Because Apple is being traded now, rather than invested in. Do you think the stock's best days are behind it? Or do you think that millions of people might still buy iPhones, iPads — and, importantly, an iTV, if Apple rolls one out next year? Here's Dan Gallagher at MarketWatch:

[T]he overall view on Wall Street is overwhelmingly bullish on the Cupertino, Calif.-based maker of the iPhone and iPad. And even the reduced price targets are still well above the stock’s current value, which was nearing the $500 mark on Monday following a brutal selloff that has shredded more than one-quarter of the company’s market value in the past two months since the high-profile launch of the iPhone 5.

Over the long term, there's a pretty good chance that Apple will see more than a few rallies to counteract these dips.

Follow Matthew DeBord and the DeBord Report on Twitter. And ask Matt questions at Quora.

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