Apple 2.0 is reporting that Apple stock dropped to US$497 in pre-market trading this morning. That's the first time that the stock has been below $500 since February 15, 2012.

On Sunday, Citigroup lowered its price target for AAPL and also downgraded the stock from Buy to Neutral. That bad news was tempered by a report from Apple showing that over 2 million iPhone 5s had been sold in mainland China in just three days.

At the time this post was being written (about 9:45 AM), the stock had recovered and was hovering in the range of $511 per share.