Apple loses $2 trillion market capitalization for the first time in 2021

Posted:
in General Discussion edited March 8
Apple's market capitalization closed below the $2 trillion threshold on Monday, after shares dropped more than 4% in intraday trading.

Credit: AppleInsider
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

  • Reply 1 of 20
    lkrupplkrupp Posts: 8,987member
    AAPL down 4.17%

    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. 
    edited March 8
  • Reply 2 of 20
    iOS_Guy80iOS_Guy80 Posts: 457member
    lkrupp said:
    AAPL down 4.17%

    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. 
    Don’t forget the $1200 stimulus check from 2020.
  • Reply 3 of 20
    DoctorQDoctorQ Posts: 22member
    Time to buy

    cornchipkillroywatto_cobra
  • Reply 4 of 20
    tzeshantzeshan Posts: 2,351member
    AAPL is 20% down from all time high of $145.09.
    jas99
  • Reply 5 of 20
    tzeshan said:
    AAPL is 20% down from all time high of $145.09.
    Like DoctorQ says, time to buy.  It might be next week or next month, but AAPL will get back there.
    killroyjas99watto_cobra
  • Reply 6 of 20
    lkrupp said:
    AAPL down 4.17%

    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. 
    The whole tech sector is overpriced. Everyone was dumping money in there because it was a safe bet with people trapped in their homes and loading up on tech. Tesla is also taking a huge beating. Now investors are shift their money to other sectors that have far more rebound as the pandemic wears off. I wouldn't be surprised if Apple drops below $100, which would put it just above where is was a year ago. I would also expect a slowing of sales since everyone loaded up on gadgets last year.
  • Reply 7 of 20

    DoctorQ said:
    Time to buy

    Nope, not yet.
  • Reply 8 of 20
    I think Apple is too prude to ever touch bitcoin or crypto but maybe I’m wrong... imagine that possibility of apple putting 1-10% into bitcoin for a long hold
    lkrupp
  • Reply 9 of 20
    rcfarcfa Posts: 946member
    Just goes to show how little people investigate companies. The entire tech sector moves unison, but there are massive differences between various companies…
    gregoriusmmuthuk_vanalingamJanNL
  • Reply 10 of 20
    lkrupp said:

    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. 
    Or groceries, children’s shoes, etc. Just sayin’. 
    elijahgcommentzilla
  • Reply 11 of 20
    XedXed Posts: 799member
    lkrupp said:
    AAPL down 4.17%

    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. 
    And if you're over the $150k ceiling? Poor people have all the luck!
  • Reply 12 of 20
    WgkruegerWgkrueger Posts: 284member
    Apple loses $2 trillion market capitalization for the first time in 2021”

    It was here on the kitchen counter last I saw it. 
    Rayz2016
  • Reply 13 of 20
    jasenj1jasenj1 Posts: 922member
    I think Apple is too prude to ever touch bitcoin or crypto but maybe I’m wrong... imagine that possibility of apple putting 1-10% into bitcoin for a long hold
    Imagine Apple issuing their own cryptocurrency.
  • Reply 14 of 20
    mpantonempantone Posts: 1,530member
    lkrupp said:
    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.” 
    I've heard this recently from family investment advisors and economists (and not the CNBC talk show types).

    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.
    edited March 8 cg27
  • Reply 15 of 20
    doggonedoggone Posts: 276member
    tzeshan said:
    AAPL is 20% down from all time high of $145.09.
    Been there multiple times with AAPL.  Stock goes down then goes up. Eventually it will surpass its last highs.  
    Have to remember that all the good news was baked in the last high.  Once the earnings came out there was no more speculation.  Apple will perk up in the next few months. 
  • Reply 16 of 20
    jasenj1 said:
    I think Apple is too prude to ever touch bitcoin or crypto but maybe I’m wrong... imagine that possibility of apple putting 1-10% into bitcoin for a long hold
    Imagine Apple issuing their own cryptocurrency.

    it would always be a sh1tcoin as bitcoin would be its dad always... 

  • Reply 17 of 20
    aderutteraderutter Posts: 442member
    Those buybacks are gonna be cheaper :) 
  • Reply 18 of 20
    lkrupplkrupp Posts: 8,987member
    Oops! AAPL back over $2T this morning. Do we get an AI update explaining this?
  • Reply 19 of 20
    Mike WuertheleMike Wuerthele Posts: 6,104administrator
    lkrupp said:
    Oops! AAPL back over $2T this morning. Do we get an AI update explaining this?
    It's almost like news and financial figures change every day!

    And maybe, at close.
  • Reply 20 of 20
    mpantonempantone Posts: 1,530member
    lkrupp said:
    Oops! AAPL back over $2T this morning. Do we get an AI update explaining this?
    That's not how news reporting works.

    "If it bleeds it leads."

    :p
    edited March 9
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