AAPL hammered, bleeds 12.5% because of coronavirus once again

Posted:
in AAPL Investors
The opening of markets on Monday commenced with a bleak outlook for Apple's immediate future, as inter-session trading over the weekend dramatically cut the share price of the iPhone maker and other major stocks, caused through the ongoing coronavirus panic by investors.

Apple CEO Tim Cook
Apple CEO Tim Cook


In a continuation of financial uncertainty that has plagued stock markets around the world in recent weeks, Apple's opening on Monday was dramatically different compared to its closing price before the weekend. On Friday, Apple closed the trading day at $277.97, a full $29.74 above the closing value on Thursday.

By Monday, after-market trading has effectively wiped out Friday's gains, with AAPL heading below $240 just before 9 am EDT. At $240, this would equate to a loss over the weekend of $37.97.

Apple opened on Monday at $243.34, representing a drop of $34.63 over Friday's closure. Its market capitalization is now down to $1.06 trillion.

The financial downturn is largely due to the coronavirus, which has led to a wave of canceled events, store closures, and production issues across most industries around the world. For Apple, this has led to delays in production for its Apple TV shows, the closure of all Apple Stores except those in China, and Apple offering assistance to Apple Card customers, among other events.

Apple share price at closure, as of March 13, 2020.


It remains to be seen if Apple will undergo a similar phenomenon as March 10, where its battered stock recovered from a sudden drop on Monday 9, itself following a weekend where Apple hemorrhaged $97 billion from its valuation in similar weekend trading initiatives.

On March 2, Apple's stock price saw a similar surge in value, again with the share price rebounding following dour weekend trading conditions.

If Apple's share price continues to spiral downward as markets continue to panic over COVID-19, there stands a good chance the price will go down below $232.56, the price where Apple's market capitalization is $1 trillion. If the price sinks to a level underneath that figure, Apple will no longer be a trillion-dollar company, at least until the share price returns to higher levels.
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Comments

  • Reply 1 of 25
    DAalsethDAalseth Posts: 2,555member
    Let's be honest, over the weekend the FED dropped rates by another 3/4% to essentially 0. They also engaged in more "Quantitative easing". This just screams panic. Panic that seeps into the markets and spooks everyone. 
    edited March 2020 tmay
  • Reply 2 of 25
    AppleishAppleish Posts: 514member
    A prominent analyst has suggested Apple go ahead and buy Disney. I doubt the coming recession will allow that.
    edited March 2020
  • Reply 3 of 25
    Mike WuertheleMike Wuerthele Posts: 6,566administrator
    Appleish said:
    A prominent analyst has suggested Apple go ahead and buy Disney. I doubt the coming recession will allow that.
    That guy's not prominent. Rosenblatt hasn't been right about Apple in seven years.
    edited March 2020 tmaydonjuanStrangeDaysfastasleep
  • Reply 4 of 25
    SpamSandwichSpamSandwich Posts: 33,407member
    For those with a strong stomach, this is the time to think about buying. Personally, I think markets could fall much lower. 

    Glad to see most people are (so far) are not completely losing their minds or rioting.
    Metriacanthosaurusflyingdp
  • Reply 5 of 25
    At what point does the Market realize that the economy is going to be effectively paused for 3-6 months and factor that into the pricing?  Very few companies are going to be making any profits in the coming months.  So does that mean that all the world's companies are worth less than they were 3 months ago?  It's not like there are any better investments than AAPL, etc. that can absorb trillions of dollars in investments.  The normal rules for evaluating assets need to be put on the shelf during this episode.  The Market is acting like a third of the industrial capacity of the world has been destroyed (rather than just paused).
    Metriacanthosaurusflyingdpronn
  • Reply 6 of 25
    iOS_Guy80iOS_Guy80 Posts: 677member
    For those with a strong stomach, this is the time to think about buying. Personally, I think markets could fall much lower. 

    Glad to see most people are (so far) are not completely losing their minds or rioting.
    👍👋👌🤟
  • Reply 7 of 25
    SpamSandwichSpamSandwich Posts: 33,407member
    At what point does the Market realize that the economy is going to be effectively paused for 3-6 months and factor that into the pricing?  Very few companies are going to be making any profits in the coming months.  So does that mean that all the world's companies are worth less than they were 3 months ago?  It's not like there are any better investments than AAPL, etc. that can absorb trillions of dollars in investments.  The normal rules for evaluating assets need to be put on the shelf during this episode.  The Market is acting like a third of the industrial capacity of the world has been destroyed (rather than just paused).
    At least Apple has the cash in the bank to ride out an extended pause. 
    randominternetpersontmayMetriacanthosaurushowieisaacksStrangeDaysrazorpit
  • Reply 8 of 25
    Appleish said:
    A prominent analyst has suggested Apple go ahead and buy Disney. I doubt the coming recession will allow that.
    That guy's not prominent. Rosenblatt hasn't been right about Apple in seven years.
    I LOL’d so hard that this because it’s true -  he hasn’t been on spot in forever. Like do the opposite of anything Rosenblatt says lol. Also, because I’d only support Apple buying Disney if they promised to fix The Rise of Skywalker. Lol
    donjuanrazorpitflyingdp
  • Reply 9 of 25
    GeorgeBMacGeorgeBMac Posts: 11,421member
    For those with a strong stomach, this is the time to think about buying. Personally, I think markets could fall much lower. 

    Glad to see most people are (so far) are not completely losing their minds or rioting.

    True...   But it's also likened to:  "Catching a falling knife".

    Reality is: the S&P is STILL inflated!   Yes, the PE ratio has dropped from about 25 down to 18.43    But, that's still higher than its long run average of 15 or 16..

    Conversely, even at its highest the Shanghai exchange has never had a PE as high as the S&P is at this moment.  And, currently it sits at under 14.

    The Wrinkle is:  The Fed is taking a two pronged approach to save the stock market:   it is both forcing investors into risk assets by lowering rates back down to zero as well as pumping hundreds of billions of printed money into the financial sector.   What is weird about the latter is that history showed that much of their QE cash migrates over to China and Asia and doesn't help the U.S. at all.   Xi should send a Thank Note to Powell.

    For myself, I will continue to slowly buy up western securities as the price drops in small chunks.  I realize that I can't time the bottom so will attempt to take advantage of what I can while i can -- especially in light of the Fed pushing people out of safe assets and into risky ones.

    But, I will keep in mind that the Fed can do almost nothing to resolve the issues facing us.  Instead resolution will, like in 2008, require a fiscal response from the government to bail out those sectors that are sinking (such as the shale, travel & hospitality industries -- remember the U.S. GDP is 70% consumer spending, not manufacturing.)
    dewme
  • Reply 10 of 25
    ElCapitanElCapitan Posts: 372member
    I am sure that; BREAKING: France hits #Apple with record €1.1 BILLION fine for monopoly practices  did not exactly help the share. 

    France’s national competition regulator announced on Monday it has fined American tech giant Apple a record €1.1 billion ($1.23bn) for anti-competitive practices after nearly a decade of investigations.

    The decision comes over Apple’s alleged anti-competitive behavior in its distribution and sales networks.

    The authority said that two of Apple’s wholesalers, Tech Data and Ingram Micro, were fined €63 million and €76 million respectively for unlawfully agreeing on prices.

    According to the French regulator, “Apple and its two wholesalers have agreed not to compete with each other and to prevent distributors from competing with each other, thereby sterilising the wholesale market for Apple products.”

    Last month, the country’s Directorate-General for Competition, Consumption and the Suppression of Fraud fined Apple €25 million for the firm’s practice of slowing down iPhones after operating system updates. This followed Apple’s release of an iOS update several years ago that introduced a new feature for older devices.

    From RT.com

  • Reply 11 of 25
    gatorguygatorguy Posts: 23,508member
    ElCapitan said:
    I am sure that; BREAKING: France hits #Apple with record €1.1 BILLION fine for monopoly practices  did not exactly help the share. 

    AI has had an article up all morning. https://forums.appleinsider.com/discussion/215029/apple-fined-1-2-billion-by-french-antitrust-watchdog#latest
    ElCapitanGeorgeBMac
  • Reply 12 of 25
    sirozhasirozha Posts: 801member
    AAPL will be at or below $150 by August 31st. 
  • Reply 13 of 25
    MacProMacPro Posts: 19,523member
    gatorguy said:
    ElCapitan said:
    I am sure that; BREAKING: France hits #Apple with record €1.1 BILLION fine for monopoly practices  did not exactly help the share. 

    AI has had an article up all morning. https://forums.appleinsider.com/discussion/215029/apple-fined-1-2-billion-by-french-antitrust-watchdog#latest
    The French need some additional cash from somewhere.  Why not go after rich American companies that make ordinateurs and refuse to name them correctly!
    JanNLStrangeDaysrazorpit
  • Reply 14 of 25
    sjworldsjworld Posts: 94member
    It’s gonna bleed even more when those lower-than-normal earnings report come in.
  • Reply 15 of 25
    GeorgeBMacGeorgeBMac Posts: 11,421member
    sjworld said:
    It’s gonna bleed even more when those lower-than-normal earnings report come in.

    Yep!
    It's taking a double wack -- maybe triple:  There's been some unknown impact on manufacturing.  But more importantly sales got hit hard in China and now they look like they will be getting hit again here in the west (including Europe) and this hit is just now getting started. 

    The good news is that those are mostly just delays rather than completely lost sales.
  • Reply 16 of 25
    cgWerkscgWerks Posts: 2,871member
    randominternetperson said:
    The Market is acting like a third of the industrial capacity of the world has been destroyed (rather than just paused).
    I think this kind of proves the point that the Markets aren't about investment. They are a play-toy for the wealthy... kind of a legitimized-Vegas.
    All these companies aren't worth less suddenly, unless you're game is to make a quick buck.

    My question is where are they putting the money while they wait to try and catch the upswing?


    sirozha said:
    AAPL will be at or below $150 by August 31st. 
    Oh gosh, I hope so! If it gets that low, I might even try to buy a few shares.
  • Reply 17 of 25
    sirozhasirozha Posts: 801member
    cgWerks said:
    randominternetperson said:
    The Market is acting like a third of the industrial capacity of the world has been destroyed (rather than just paused).
    I think this kind of proves the point that the Markets aren't about investment. They are a play-toy for the wealthy... kind of a legitimized-Vegas.
    All these companies aren't worth less suddenly, unless you're game is to make a quick buck.

    My question is where are they putting the money while they wait to try and catch the upswing?

    Is Vegas illegal?  
  • Reply 18 of 25
    sirozha said:
    AAPL will be at or below $150 by August 31st. 
    Why are you spending time talking about this here? If your guesstimates is so exact and such a sure thing, then spend more time raising huge positions to short the stock so you can make serious money.
    larryjwfastasleep
  • Reply 19 of 25
    cgWerkscgWerks Posts: 2,871member
    sirozha said:
    Is Vegas illegal?  
    No, though some might question the morality of gambling, I suppose.
    By legitimized, I meant they are trying to pretend they aren't gambling by using investment terminology.
    If I had enough spare money, I might 'play' the Markets too... as I could have easily made a TON of $$$ over the years on AAPL.
    AAPL reacts so predictably to the media, it is almost like shooting fish in a barrel.
  • Reply 20 of 25
    razorpitrazorpit Posts: 1,796member
    Appleish said:
    A prominent analyst has suggested Apple go ahead and buy Disney. I doubt the coming recession will allow that.
    That guy's not prominent. Rosenblatt hasn't been right about Apple in seven years.
    I LOL’d so hard that this because it’s true -  he hasn’t been on spot in forever. Like do the opposite of anything Rosenblatt says lol. Also, because I’d only support Apple buying Disney if they promised to fix The Rise of Skywalker. Lol
    There is nothing you can do to fix that trilogy other than "burning" every copy known to man, woman, and dog. Resurrecting Carrie Fisher. Telling Kathleen Kennedy to go take a hike. The remake the last three "Skywalker" films. You do all that, then yes, you can go buy Disney.  ;)
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