Apple loses $2 trillion market capitalization for the first time in 2021
Apple's market capitalization closed below the $2 trillion threshold on Monday, after shares dropped more than 4% in intraday trading.
Credit: AppleInsider
The Cupertino tech giant's valuation closed at $1.96 trillion. Shares of AAPL declined 4.17% during trading Monday before reaching a closing price of $116.36. Apple's market valuation is reached by multiplying that number by the number of outstanding shares.
Apple was the first publicly traded U.S. company to hit a $2 trillion market capitalization back in August 2020.
The drop in Apple's share price comes amid a broader decline among technology stocks. Since Feb. 16, the NASDAQ 100 has declined by more than 10%, according to Business Insider. Analysts believe investors are rotating out of tech stocks and into value or cyclical stocks that will benefit from the impending economic reopening.
Apple also lost its $2 trillion valuation in September 2020. In one day, the company bled nearly $180 billion in capitalization. Since that plunge, Apple's share price has climbed 3.14%.
In the first quarter of 2021, Apple reported revenue above $100 billion for the first time. The company's Q1 2021 earnings increased 21% year-over-year to a record-breaking high of $111.4 billion.
Credit: AppleInsider
The Cupertino tech giant's valuation closed at $1.96 trillion. Shares of AAPL declined 4.17% during trading Monday before reaching a closing price of $116.36. Apple's market valuation is reached by multiplying that number by the number of outstanding shares.
Apple was the first publicly traded U.S. company to hit a $2 trillion market capitalization back in August 2020.
The drop in Apple's share price comes amid a broader decline among technology stocks. Since Feb. 16, the NASDAQ 100 has declined by more than 10%, according to Business Insider. Analysts believe investors are rotating out of tech stocks and into value or cyclical stocks that will benefit from the impending economic reopening.
Apple also lost its $2 trillion valuation in September 2020. In one day, the company bled nearly $180 billion in capitalization. Since that plunge, Apple's share price has climbed 3.14%.
In the first quarter of 2021, Apple reported revenue above $100 billion for the first time. The company's Q1 2021 earnings increased 21% year-over-year to a record-breaking high of $111.4 billion.
Comments
GOOG down 4.27%
FB down 3.39%
MSFT down 1.82%
AMZN down 1.62%
The tech sector is taking a beating for some reason. Any guesses? The article says "Analysts believe investors are rotating out of tech stocks and into value or cyclical stocks that will benefit from the impending economic reopening.”
if you include the $600 stimulus check in January plus the $1400 coming soon with it that’s $2K with which to buy a decent Mac setup, $4K if you’re married and are under the $150K ceiling.
Nope, not yet.
It was here on the kitchen counter last I saw it.
There is better expected upside from value stocks in the next six months. The growth stocks had a great run so far through the pandemic. Not to worry, the growth stocks will be back, this is just a portfolio rebalance.
It's not like these fund managers are completely eliminating AAPL and the other FANG+ symbols, simply reducing their holdings. They likely saw their portfolio as being overweighted on these tech issues.
It is noteworthy that the Dow 30 was up considerably today. The small cap Russell 2000 index was also up today. The S&P 500 index is market cap weighted so the big tech stocks (like AAPL, MSFT, GOOG, etc.) pulled down the index.
If you look at the top twenty S&P 500 components, the non-tech stocks actually did quite well:
Berkshire-Hathaway BRK-B +1.76%
Visa V +2.26%
Johnson & Johnson JNJ +0.83%
JPMorgan & Chase JPM +1.33%
(Walmart WMT was slightly down)
United Health UNH +0.88%
Mastercard MA +2.90%
Procter & Gamble PG +1.06%
Home Depot HD +2.17%
et cetera.
Of the top 20 S&P 500 components the seven tech stocks and WMT were down. Everything else was positive (including the two telecoms: Verizon and AT&T).
My guess is that this stock price slump for the techs will be short lived. They all weathered the pandemic quite well in terms of earnings.
AAPL at $116, FB at $255 and AMZN at $2950 are all quite attractive.
And maybe, at close.
"If it bleeds it leads."