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Apple's stock price fell 22.6% from its September high, and its market value evaporated by US$532 billion - Naijatechnews
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Apple’s stock price fell 22.6% from its September high, and its market value evaporated by US$532 billion


Naija Tech News (NTN) on 19, and in content, Apple’s stock price fell 22.6% from its September high, and its market value evaporated by US$532 billion, apple, stock price .

According to foreign media reports, Apple’s stock price fell too fast. In just 12 trading days, it plummeted by more than 20% from a historical high and its market value evaporated by more than 500 billion US dollars.

On Friday, local time on the Nasdaq Stock Exchange in the United States, Apple’s stock price fell 3.50 US dollars to close at 106.84 US dollars, a decrease of 3.17%. Apple’s closing price on Friday fell 22.6% from the intraday high of US$137.98 hit on September 2 and its market value evaporated by about US$532 billion.

Apple once announced a 1:4 stock split, and in August before the news of the stock split was released, Apple’s stock price rose all the way. The sharp drop in Apple’s stock price may also be affected by the company’s recent product launch event. This is Apple’s first product launch event this year, but the long-awaited 2020 version of the iPhone did not appear.

On Tuesday, local time, Apple released some new products and some software updates, including Apple Watch Series 6, iPad Air and a fitness service, as well as Apple Service Pack Apple One.

At this new product launch event, apart from Apple not announcing any new iPhone products, the most attractive lack of Apple One is that it does not provide a connection to iPhone hardware. Therefore, Toni Sacconaghi, a senior research analyst at the investment bank Bernstein, called Apple’s new product launch “relatively flat.”

“We believe that it is difficult to get users to leave competitive music, video or game services, because users are often very loyal to these services.” Sakonagi said in a research report, “We still believe that, Apple should look for more creative service packages, bundling its hardware + services into an integrated subscription package.”

The recent weakness in Apple’s stock price also emerged at a time when large-cap technology stocks encountered investors’ high cash-outs and carried out widespread selling. Since the Nasdaq Composite Index, where technology stocks have gathered for some time, has been leaping forward, it has now entered a correction period. As of Friday, the index has fallen more than 10% from its historical high. Some investors believe that the decline of popular technology stocks is caused by investors’ concerns about their overvaluation and rapid rise.

Prior to the recent sell-off of technology stocks, Apple’s stock price soared 21.4% in August alone, which was mainly driven by the company’s stock split. This situation confuses many people on Wall Street because Apple’s stock split does not affect the company’s fundamentals, nor does it affect the intrinsic value of the existing stock price.

Nevertheless, some analysts believe that the rise in Apple’s stock price was based on its super market value status and history of high-quality products.

Gene Munster of Loup Ventures, an American research venture capital firm, said that the most important aspect of Apple’s new product launch is that the company “sell itself cleverly to consumers.”

“They are able to get out of the predicament because they have some of the best products in the world,” Muster told the media on Tuesday. “They do have very good products, and consumers see a value premium.”

As of the close of US stocks on Friday, Apple’s market value was $1.827 trillion.

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