Everyone knows Apple is one of the leading global tech firms, translating to consistently positive stock performance. However, on Thursday, the share experienced a significant slide, dropping about 3.5% of its total value. While it’s still positive in the long run, such a sudden price drop is uncharacteristic for the company. So what was behind the sudden drop in the stock’s price, poor performance, or hostile market conditions? As it usually turns out, it’s a little bit of both of those things.
For starters, the entire tech-focused Nasdaq index has been suffering. It dropped 2.4% on Thursday. Since Apple makes about 10% of the index’s total value, that means the company performed worse than peers. That’s proof that negative market conditions aren’t the only thing weighing down the firm’s shares.
But what’s the negative market occurrence that triggered the across-the-board sell-off of tech stocks. Well, it’s the FED’s announcement that interest rates will rise across the board. Naturally, when something like that happens, stockholders sell since they expect others to do the same. With that, many tech giants have lost value, Amazon dropped 2.6%, Meta was 1.6% lower, and Microsoft dropped 2.7%.
However, none of that concerns Apple specifically, which is facing some further pressure from Chinese sales. Namely, the year-on-year data shows a growth of 4% during November. Now, those numbers aren’t bad, but the previous November saw a massive 90% spike in iPhone purchases. Furthermore, while iPhone sales are growing, that may simply indicate more phone purchases in China. In fact, Apple seems to be losing in regards to market share to its primary rival, Android.
Still, while Apple did have quite a bad day, it doesn’t harm the company too much. The stock has experienced massive gains in recent periods, so the drop might be a correction.
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