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Inside Apple's Big Guidance Cut and What It Can Do

Listen to TheStreet's Eric Jhonsa and Action Alerts Plus analyst Zev Fima discuss the reasons for Apple's surprise pre-announcement.

Apple (AAPL) - Get Report CEO Tim Cook pre-announced a cut to guidance for the upcoming earnings causing shares to plummet close to 10% since the market closed on Wednesday.

TheStreet's Eric Jhonsa and Action Alerts Plus research analyst Zev Fima analyze the reasons for the tech giant's surprise pre-announcement and consider the near- and long-term outlook for its stock.

Fima believes there are still things to like about Apple in the long term, "I think healthcare is one area that Tim Cook has expressed a lot of interest in. That also plays to the wearables market."

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In addition to healthcare, Fima believes that Project Titan, the autonomous vehicle play, and the rumored AR/VR headset give Apple a strong long-term outlook, despite the sell off.

For more analysis listen to the full podcast below. Also be sure to check out what Jim Cramer says to do when a company pre-announces a short fall.

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