Apple's stock market value falls below $2 trillion
$Apple (AAPL.US)$ stock market value shrank sharply on Tuesday following its steep drop last year, leaving it below $2 trillion for the first time since March 2021.
The sell-off came a year after the iPhone maker became the first company to reach the $3 trillion market capitalization milestone.
Apple's shares declined 3.7% to $125.07 after Exane BNP Paribas analyst Jerome Ramel downgraded the company to "neutral" from "outperform," slashing his price target to $140 from $180, according to Refinitiv Eikon.
Also exacerbating investors' worries that a slowing global economy and high inflation may be hurting demand for Apple devices, Nikkei reported, citing unnamed suppliers, that Apple has told suppliers to manufacture fewer parts for its ear buds, watches and laptops.
The drop in Apple's share price put its market capitalization at $1.99 trillion.
Ramel cut his iPhone shipment targets for fiscal 2023 to 224 million units from 245 million units, reflecting supply chain issues from manufacturer Foxconn and consumers cutting back spending on high-end phones.
Last year's steep sell-off on Wall Street punished tech-related heavyweights as investors worried about rising interest rates dumped stocks with high valuations.
The combined stock market value of Apple, $Microsoft (MSFT.US)$ , $Amazon (AMZN.US)$ , $Alphabet-A (GOOGL.US)$ and $Meta Platforms (META.US)$ now accounts for about 18% of the S&P 500, down from as much as 24% in 2020.
The sell-off came a year after the iPhone maker became the first company to reach the $3 trillion market capitalization milestone.
Apple's shares declined 3.7% to $125.07 after Exane BNP Paribas analyst Jerome Ramel downgraded the company to "neutral" from "outperform," slashing his price target to $140 from $180, according to Refinitiv Eikon.
Also exacerbating investors' worries that a slowing global economy and high inflation may be hurting demand for Apple devices, Nikkei reported, citing unnamed suppliers, that Apple has told suppliers to manufacture fewer parts for its ear buds, watches and laptops.
The drop in Apple's share price put its market capitalization at $1.99 trillion.
Ramel cut his iPhone shipment targets for fiscal 2023 to 224 million units from 245 million units, reflecting supply chain issues from manufacturer Foxconn and consumers cutting back spending on high-end phones.
Last year's steep sell-off on Wall Street punished tech-related heavyweights as investors worried about rising interest rates dumped stocks with high valuations.
The combined stock market value of Apple, $Microsoft (MSFT.US)$ , $Amazon (AMZN.US)$ , $Alphabet-A (GOOGL.US)$ and $Meta Platforms (META.US)$ now accounts for about 18% of the S&P 500, down from as much as 24% in 2020.
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Red__Bull : A lot of AAPL bears out there but a bargain at $125. My largest portfolio position, still on profit territory cuz I hold long and ride the wave. I worked 20 years at a US mega telecom...IT customer service and fulfillment systems. Every new iPhone launch had customers lining up online waiting for midnight pre-order. Watched my system like a hawk to make sure it could handle the massive order load. AAPL isn't going away...cult like following for their products. Stock is at 2021 value, but guess what? P/E ratio has come down a lot too. Look at Moo's analysis tab on AAPL then try to make the case for it falling much lower. Not gonna happen. If you can hold long, it will come back up.