With the U.S. stock exchanges closed on Monday in observance of Christmas Day, shares of Apple Inc. (AAPL) took a tumble on Tuesday, falling 2.53%.
What could make the world's largest company shed so much weight in the first trading day after the holidays, one in which it generated billions of dollars in sales? A report from a Taiwan newspaper and several analysts noting that iPhone X demand appears to be waning.
We questioned these observations for various reasons, ultimately wondering just how legit these reports are. It's not uncommon to see numerous iPhone production reports from unnamed sources throughout the quarter. The impact didn't only weigh on Apple, though. It took down names like Skyworks Solutions (SWKS) and Qorvo QRVO, which each fell 1.92% and 2.64% on Tuesday, respectively.
But Piper Jaffray analyst Harsh Kumar is having none of it. He says investors should buy the pullback in Skyworks stock, calling the recent reports that hurt Apple and its supplier stocks "noise." In fact, according to his channel checks, "the Apple supply chain is still working hard to meet demand."
- Apple Stock Tumbles on Reports of Low iPhone X Demand -- Is It Legit?
- 5 Big Apple Predictions for 2018
- Oil Prices, Apple, Shell and Boeing - 5 Things You Must Know
On Wednesday, Kumar said he remains comfortable with Skyworks' guidance over the next two quarters and isn't aware of any "specific" supply chain cuts. Besides, whether a customer chooses the iPhone 7 or 8 vs. the iPhone X is "relatively minor" for Skyworks' top line. As a result, he maintains his overweight buy rating and $115 price target.
Skyworks stock is up 1% to $96.17 in early Wednesday trading.
More of What's Trending on TheStreet: