Dip Buyers Step Up on Apple (AAPL), Others Move Into Google (GOOGL)

After trading down over 7% in after-hours action following disappointing iPhone sales, dip buyers are being seen in Apple (NASDAQ: AAPL) this morning. Shares last traded at $124.46, down 4.8%.

The dip buyers in Apple were comforted as analysts across Wall Street came out to defend the stock in force this morning. Despite the seemingly disappointing numbers, the stock only received one downgrade and only a handful of price target cuts. One analyst - Gene Munster from Piper Jaffray - actually raised his price target.

"We are buyers on the 6% aftermarket pullback on shares of AAPL based on the belief that Apple will continue to gain share in the high-end smartphone market and margins will expand into the S cycle resulting in Street numbers inching higher over the next several quarters," Munster said. His price target goes to $172.

Another bearish-leaning analyst - Deutsche Bank's Sherri Scribner - said the valuation is fair despite the miss. "With shares trading near historical average PEs, we view valuation as fair and reflective of the slower growth potential in FY-16.," she said.

Meanwhile, Google (NASDAQ: GOOG) (NASDAQ: GOOGL) is having a strong session and traders believe that money leaving Apple is moving into Google. Shares last traded up 1.7% to $673.23.

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