Is Apple stock a buy right now given the Fortnite feud?

Apple (NASDAQ: AAPL) stock price is trading around 20% off the last week’s highs as the stock market corrects lower. Moreover, Apple’s feud with Epic Games is not helping the stock in the short-term.

Fundamental analysis: Fortnite feud may hurt Apple’s business model

Apple is involved in one of the most-followed feuds with Epic Games this year, as it attempts to defend its App Store fee structure. Epic Games, the maker of popular video game Fortnite, initiated a “war” against the tech giant last month after launching its own direct payment option. 

Both Apple and Google’s Play Store, charge 30% fee on all payments in their online stores. Irritated by this policy, Epic Games released the Fortnite “mega drop”, which offered a permanent discount on the purchase of in-game credits e up to 20%.

Apple and Google responded by removing Fortnite from the App Store and Play Store respectively. Epic’s next move was to file an antitrust lawsuit against Apple to establish the App Store as a monopoly.

Apple raised the stakes by filling their own lawsuit and seeking damages from Epic Games for violating the iOS App Store guidelines. 

It is estimated Fortnite amasses over 350 million players across the globe.

Technical analysis: Where to buy

Apple share price has been in a correction since logging the fresh all-time high near $138 on September 02. Shares lost over 3% yesterday as some early investors capitalize on their investment. 

The Fortnite row is not expected to help Apple in the short-term given the loyal fan base that the game has. Still, Apple’s revenue is diversified and this may prove to be a temporary blow for the tech giant.

From a technical standpoint, the zone between $100 and $105 offers a good opportunity to invest in AAPL.

Summary

As the legal battle between Apple and Epic Games drags on, shares of the iPhone-maker have continued to correct lower, approaching the buy zone just above the $100 mark.