Apple stock took another plunge yesterday, finishing down 4.4 percent. The reason for the fall is continuing concerns about the iPhone, which have caused numerous analysts to downgrade their price targets for AAPL.
It’s not just Apple that’s being affected, either. The company’s suppliers have also been hit by fears about the future of iPhone sales. Multiple suppliers associated with Apple have seen their stock prices decline by up to 5 percent as a result.
Struggling to understand how Apple stock erased more value in the last six weeks than it made in its first quarter-century?
It’s bloody complicated, but these five reasons help explain Apple’s plunging stock price.
Apple stock slid 1.9 percent in pre-market trading today, after President Donald Trump laid out plans for new tariffs to be placed on the iPhone.
Overall, AAPL is trading down 20 percent this month. This latest blow comes after six weeks of declines for Apple, which became the first publicly traded U.S. company to pass a $1 trillion valuation earlier this year.
Entrepreneur and Shark Tank investor Kevin O’Leary said it “took seconds” to sell off his Apple stock after hearing company executives announce the tech company would no longer disclose units sold.
The self-named “Mr. Wonderful” said he was listening in on Apple’s Q4 earnings call on Nov. 1 and was shocked as CEO Tim Cook described unit sales like a shopping cart. The items in the cart aren’t as important as the total bill of sale, Cook said.
September 17, 2012: On the back of record iPhone 5 preorders of 2 million in 24 hours, Apple’s stock price hits a new all-time high. For the first time in history, AAPL breaks the $700 mark in after-hours trading. Passing the milestone cements Cupertino’s place as the world’s most valuable publicly traded company.
Amazingly, the new record is $270 a share higher than Apple at the start of the year. The stock rose 65 percent in just nine months.
August 29, 2001: During a meeting, the Apple board awards Steve Jobs new stock options that will become part of a stock-backdating scandal several years later.
When the matter makes court, Apple’s former general counsel pays $2.2 million to settle charges that she backdated stock options for Jobs, herself and others — and created fake paperwork to hide this fact.
The long race to see which U.S. tech giant will become the first company worth $1 trillion is finally over.
Apple won.
Investors rushed to buy Apple stock today, pushing the share price up almost 6 percent. That added a whopping $55 billion to the company’s market capitalization.
Apple is still a bit short of the much-hyped $1 trillion valuation, but moved noticeably closer today.
Apple’s market value will eventually top $1 trillion, but Amazon is evolving more and more as if it will get there first.
The gap has rapidly narrowed between the two company’s market values. Apple, always believed to be the first company to reach $1 trillion started out the year with stock valued 50 percent higher than Amazon’s.
That gap is now just 10 percent.
The co-founder of Microsoft joined the chorus of voices speaking positively about Apple today. Bill Gates’ relationship with Apple goes back to the very dawn of the company, and he and Steve Jobs were the best of frenemies.
Now that he’s a philanthropist rather the CEO of Microsoft he can speak openly about a former rival.
