Apple Closes at Below $100 For the First Time in 15 Months
The Silicon Valley Giant has closed at a share price lower than $100; investors are quite concerned about the news.
For the first time in 15 months, Apple’s stock closed below $100 due to the sharp market decline witnessed on Thursday. The more solid explanation for the slowdown in stock can be the latest iPhone and the slowing Chinese economy. In market value, since earlier December Apple, Inc. has lost $100 billion.
The concerns of the iPhone’s sales have been spooking the investors of the company out now, as it is the most critical piece of the organization. To keep up with the slow sales of the latest device, Apple has cut back on the production. Over 60% of the revenue comes from the sales of this handset, so any sign of weaknesses that might appear in the demand of the product is going to be a growing concern for the investors. Along with the declining iPhone sales, the iPad sales have also seen a drop and the Apple Watch is yet to become a favorite amongst the users.
In New York, the stock price fell by 4.2% to a share price of $96.45. In a year, the world’s most popular stock has lost over $52 billion in market capitalization. According to one of the shareholders, who is the chief investment officer at BMO Harris Bank, this drop in the stock price is a cause for concern; however, they are expecting that the growth of the share price will resume.
Last month, Apple had fallen by 18% and on Thursday, the analysts at UBS and RBC Capital Markets along with a number of other research and financial services firm lowered their estimates for the sales of the company’s flagship product.
Another analyst at Piper Jaffray, Gene Munster, who has followed the stock of the Silicon Valley giant for over a decade, showed his surprise on the decline as well. He further stated that it is hard for the shareholders to make decisions in the absence information and operate in an unknown environment. He expects that the condition will get better once the tech giant releases its next earnings reports, as that would make the situation a little clearer.
The technology leader has not yet commented on this matter and neither has it shared the numbers on the iPhone’s sales yet. In case the year-over-year sales of the product drops, it will become hard for the other products to pick up the slack. If this happens in the second quarter of the current fiscal year, the organization might not be able to increase the sales in the third quarter.