Apple Inc.’s stock soared 5.8% in premarket trade Tuesday, bouncing off Monday’s 10-month low close, with Wall Street analysts rushing to the technology giant’s defense. Apple’s stock has been hit particularly hard recently–it tumbled 22% from June 20 through Monday, while the S&P 500 has dropped 11%–on fears over the company’s exposure to a slowing Chinese economy. Apple’s derives 16% of its revenue from China, according to FactSet. Analyst Brian White at Cantor Fitzgerald said China concerns are “way overblown,” and the recent market selloff has taken Apple’s stock to “severely depressed valuation levels.” He believes the 4G expansion in China, the rise of the middle class there and Apple’s expansion across the country “will continue to provide big opportunities for growth at Apple.” RBC Capital analyst Amit Daryanani said recent comments by Apple CEO Tim Cook suggest July and August have been strong, in China specifically. Daryanani reminded that even when U.S. markets went through a severe correction in 2008 to 2009, Apple’s U.S. revenue were up 29% and iPhone shipments increased more than 70%.
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