Apple Inc.(NASDAQ:AAPL) shares bounced back with a vengeance on Monday, rising more than 7 percent, as investors bought into the company after its recent correction.
Some analysts, who have been watching the stock, said that the recent sell-off in the stock was `insane' and had been overdone.
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After soaring over $700 in late September just following the sale of its iPhone 5, the stock lost about a fifth of its value and was near $500 levels.
On Monday the stock gained $38 to close at $565.73 a share.
According to Brian White of Topeka Capital Markets the renewed buying interest in the stock may be due to the holiday season and the range of products that the company has recently launched.
White said that the company could see its earnings rise by an annual 20 to 30 percent over the next five years, based on its low market share in mobile phones and personal computers "combined with growth opportunities in tablets and new potential areas such as Apple TV."
However last month Apple itself had warned that it profit margins are likely to be squeezed in the current quarter due to the expenses associated with the launch of new products.
Monday's increase is the biggest one-day gain since May 21, when the stock closed up 5.8 percent at $561.30.
Shares of Apple rose $38.05, or 7.2 percent, to close at $565.73 Monday. Even with the gain, the stock is down nearly 20 percent from the record high of $705.10 struck on September 21.