Apple, which has always been resistant to declines, has also been unable to escape the selling pressure of technology stocks. It has fallen 8% in the past four trading days and has fallen into a bear market. Apple continued to tumble this week without changing its business outlook, which seemed to signal a bad outlook for U.S. stocks.
apple (AAPL-US) tumbled 5.2% on Wednesday and fell another 2.7% on Thursday (12th) to close at $142.56 per share, falling more sharply than the broader market on both days. Apple has fallen 20% from its highs, becoming the last tech giant among the FAANG fang stocks to fall into a bear market.
U.S. stocks teetered on worries regarding the Federal Reserve (Fed) rate hike, weakening consumer confidence, stubborn inflation and supply chain challenges.Nasdaq Composite IndexThis week, it fell more than 7%, and it may be closed for six consecutive weeks.S&P 500 IndexThursday’s close was one step away from a bear market.
Apple is seen by investors as a relatively safe haven for capital. Although it faces some supply chain challenges, its business outlook has remained largely unchanged. The stock’s decline actually reflects the sell-off of various assets in the financial market. , investor confidence is deteriorating.
In a bear market, no place is safe, not even Apple, said Jeff DeGraff of Renaissance Macro Research.
Nick Colas, co-founder of Datatrek, said: “We expect continued Apple sell-off, but the problem is not that iPhone shipments or services revenue will be challenged this quarter, but because once investors start selling a certain The stocks of the industry leaders are rarely sold following one day.”
The Fed announced in November last year that it would raise interest rates, and high-growth technology stocks began to fall. Apple attracted many people because it is a low-risk weight stock among technology stocks.
Apple is still sitting on substantial cash flow, enough to weather the downturn and continue to reward shareholders. Despite weakening consumer confidence, iPhone sales continued to grow in the quarter ended March. Chief Executive Tim Cook said at a legal meeting last month that the biggest problem for Apple is not cooling demand, but how to resolve supply chain bottlenecks to meet strong demand.
Apple on Wednesday ceded the throne of global market capitalization to Saudi Arabian company Aramco,Dow JonesAramco closed Thursday with a market value of $2.383 trillion, while Apple’s market value was $2.307 trillion, market data showed.
