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Apple ‘Gloom And Doom’ Has Reached ‘Extreme’ Level

Negative sentiment toward Apple ( AAPL ) stock has gone too far, Drexel Hamilton analyst Brian White said in a report Tuesday. “In our view, the ‘gloom and doom’ sentiment engulfing the Apple story has reached extreme levels and we believe the stock represents an exceptional value,” White said. He reiterated his buy rating on Apple stock with a price target of 185. “We continue to look forward to a new iPhone cycle with the iPhone 7 and new geographic opportunities (e.g. India), combined with longer-term opportunities that leverage its powerful ecosystem, iconic brand and deep financial resources,” White said. Still, White noted weakness in Apple’s supply chain in April, which is likely the result of the company’s planned $2 billion iPhone inventory reduction. Apple stock is down 12% year to date and down about 30% from its all-time high of 134.54, reached April 28, 2015. Apple was up 0.3% to near 93 on the stock market today . “We believe that Apple is extremely oversold,” White said. He predicted that the current quarter, Apple’s fiscal Q3, will mark a trough for sales and operating profit. He expects Apple’s financials to recover starting this fall with the iPhone 7 release. “In our view, the combination of a difficult year-over-year iPhone comparison and a tougher-than-expected macro environment are largely to blame for Apple’s recent challenges,” White said. “Moreover, the market gives Apple no credit for its expansive digital matrix across software, services and hardware that deliver a seamless experience for an installed base of 1 billion active devices.” Apple stock has been knocked down by worries about declining iPhone sales, a slowdown in China and a perceived lack of innovation. Apple’s last new product category was the Apple Watch smartwatch, which debuted in April 2015. Sales to date have been underwhelming. Apple Watch Study Finds Device Comes Up Short A yearlong study of Apple Watch early adopters by brand agency MBLM found users are conflicted about the wearable device. MBLM’s panel of Apple Watch users felt that the watch has not come close to achieving its potential and offers less value than they had hoped for. “The Apple Watch does not measure up for most people,” Mario Natarelli, MBLM’s managing partner, said in a statement . “For the device, which Apple claimed to be its most intimate, to be successful, we believe Apple needs to reach deeper and form stronger bonds with its users.” The biggest complaints about the Apple Watch include its dependence on the iPhone and lack of must-have applications. MBLM found little interest in the next-generation Apple Watch among its panel of users. “No one on the panel said that they would definitely purchase the next version of the Apple Watch,” the firm said. “Most feel that the updates will not be significant and the cost will not be worth it. However, some did mention that they might consider it if there is a trade-in program.” RELATED: When Tim Cook Gives A TV Interview, Apple Investors Should Beware How Many Watches Did Apple Sell Last Quarter?

Verizon, Disney Bury The Hatchet Over ESPN, Skinny TV Bundle

Verizon Communication s ( VZ ) and Walt Disney ’s ( DIS ) ESPN are friends again after resolving their legal dispute over the sports network’s availability on a slimmed-down programming package. Terms of the settlement were not disclosed. Disney reports earnings Tuesday after the market close. Shares in Verizon were up a fraction, above 51, on the stock market today . Disney’s stock was up 1.1%, near 106.50, in afternoon trading. Verizon launched “Custom TV” in April 2015. The less-expensive programming package, with fewer channels, was designed to attract new customers for its FiOS TV service. Verizon’s base package excluded Disney’s ESPN, which garners the highest fees among cable networks. Disney sued Verizon claiming it doesn’t have rights to exclude its sports channel from TV bundles under programming deals. Verizon in February revamped its “Custom TV” package by offering two standard bundles — one with sports channels ESPN, Fox Sports and NBC Sports and one without them. Both companies on Tuesday issued statements. “We have a long-standing relationship with Verizon,” said Sean Breen, ESPN’s senior vice president, affiliate sales.  “We look forward to working with them to provide great content to consumers for years to come.” Terry Denson, Verizon VP, content strategy and acquisition, said: “ESPN is an important partner of ours. We look forward to further collaborating with them to deliver customers content across all of our platforms.”

Why Qihoo, YY, Going-Private Chinese Tech Stocks Are Rebounding

U.S.-listed Chinese stocks  Qihoo 360 ( QIHU ), YY ( YY ), E-Commerce China Dangdang ( DANG ),  Momo ( MOMO ) and Vianet ( VNET ) rebounded Tuesday after tumbling for days on reports that Chinese regulators might put the brakes on their plans to delist from the American market and relist in mainland China. The China Securities Regulatory Commission is mulling limits on the number of reverse mergers from previously foreign-listed companies, sources told Bloomberg. But that eased fears of an outright ban. YY YY shares gained 5% in afternoon trade on the stock market today  but have tumbled about 17% since last Wednesday alone. YY stock sliced both its 50-day and 200-day lines on Friday. Reports surfaced late last week of possible regulatory scrutiny regarding the music and entertainment social network. Qihoo 360 After losing 11.3% Monday and briefly sipping below its 200-day line, Qihoo shares rebounded more than 8%. The China-based search engine and security firm announced in December a $9.3 billion deal to go private. Qihoo is a rival to much-larger Baidu ( BIDU ). Baidu has its own problems involving sponsored posts, with the stock edging down Tuesday but tumbling 13% so far this month. Momo Momo, which said last June that it had received a going-private bid from its CEO and affiliates, rose 8% intraday but remain 21% below its close of May 4’s trading session. Momo, a Chinese mobile dating app, is currently trading below its 50-day and 200-day levels. Dangdang Dangdang shares perked up nearly 11% intraday Tuesday after tumbling for three straight trading days, including a 13.3% free fall Monday. The e-commerce firm received a going-private proposal last July. Vianet Vianet rose 15% intraday after crashing 29% over the prior three sessions to the lowest level since September 2014. The Internet data carrier got a buyout offer last June. The China Securities Regulatory Commission believes some of these companies’ valuations are too high, Bloomberg  reported, citing people familiar with the matter.