What the Heck is Going On With Apple?

Apple (NASDAQ:AAPL) stock was on a rollercoaster on Friday afternoon, dipping as low as $507 before buyers jumped at the chance to buy shares at a discount, pushing the stock up 0.39 percent to $527.68 by close of day. The company officially entered bear territory last week, but has received backing from several analysts who think fears are overstated and are rapidly issuing buy recommendations.

The stock reached fresh lows in several months on Thursday, ending the day 2.1 percent down at $525.24 to see its market capitalization fall below $500 billion for the first time since May. It stood at $494.45 at end of day for a company that has been touted by many as a potential trillion-dollar entity.

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Apple’s stock is now down almost 25 percent over the last two months from its closing high of $702.10 in September, when it was enjoying the launch of the iPhone 5 an the buzz of the upcoming iPad mini. That quickly changed into what seemed like panic, with investors rushing to take profits before it was too late.

“Apple was the classic case of no more incremental buyers of the stock,” Enis Taner of RiskReversal.com said to CNBC.com. “No matter how bullish a story, you need new buyers of the stock each and every day, or it will go down. Simply put: Apple has run out of them.”

However, some analysts suggest Apple is going through the rough transition from a growth story to a value story. “We believe that Apple is transitioning from a hyper-growth story to a more traditional, high quality branded company story,” Bernstein Research analyst Toni Sacconaghi told CNBC.com. The analyst has an $800 price target on the stock.

The pessimism around the company arose from supply shortage worries regarding the new iPhone 5 and the iPad mini. Investors also did not take well to top management changes announced last month that included the scheduled departure of iOS chief Scott Forstall and new retail head John Browett. Apple also saw its second consecutive earnings miss last quarter and predicted a lower-than-expected profit margin for the December quarter.

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