Apple stock fell almost 7% on Friday because of the coronavirus. However, AAPL recovered a huge chunk of its loss in no time. Today it is also up.
Apple Inc (NASDAQ: AAPL) stock is by far one of the most interesting in the market today. It has enjoyed quite the bull run for months, profiting off the success of its flagship iPhone 11 series and the new AirPods as well. In the period from the beginning of last year and into 2020, Apple pulled in returns of over 90% for its investors. However, since the new coronavirus COVID-19 epidemic got worse, many stocks have suffered significant losses. For example, on Friday alone, Apple stock fell by as much as 6.3%. However, it surprisingly corrected itself, reducing the loss to just 1.7%
Apple (AAPL) Stock Fell
Apple has had a rough time managing the coronavirus outbreak. Because of the restriction in China, Apple manufacturers and retail stores could not perform as expected. This disruption recently prompted a disappointing announcement from the company. Last month, Apple admitted that the coronavirus is a problem strong enough to affect its revenue guidance for the quarter. Apple (AAPL) stock has fallen about 17% since then.
As the virus continues to rage, the stock markets and all the individual stocks it encompasses have also been crashing. This has been so pronounced that some of the world’s wealthiest people lost a very large chunk of their fortune. The outbreak and Apple’s difficulty with keeping up most likely caused the 6.8% crash.
Apple (AAPL) Stock Fell but Recovered
It makes sense to buy into the stock market when prices are down. When prices are low, investors have the chance to buy a position in some of these companies without spending too much. Another advantage is the chance that they can rise high, as opposed to rising higher if they are already high.
Basically, investors took the advantage of low prices and pumped money into the market, giving AAPL back some of its lost health. Opportunities like this do not present themselves very often so when they do, it makes sense that investors quickly jumped on the opportunity and took advantage of it.
There is also the possibility that Apple took the opportunity to buy back a significant number of shares, also without breaking the bank. An AppleInsider report also says this has happened several times over the last ten years. The report, however, highlights that for two years, 2013 and 2014, Apple seized the opportunity when its stock fell, much more than before. The report says the company bought “double-digit billions worth of Apple stock” when its sales were termed “disappointing.”
The Future of AAPL
While the coronavirus is still spreading rapidly with a high mortality rate, Apple doesn’t seem to be too worried. Speaking on Fox Business just days ago, Apple CEO Tim Cook specifically says he doesn’t think the disappointing situation will last.
“By and large, I think this is a temporary condition, not a long-term kind of thing. Apple is fundamentally strong, and that’s how I see it,” explained he.
At the moment of writing, AAPL is trading at $290.48 which means that the stock has gained over 6% since the previous closing. The market cap of teh company is 1.27 trillion.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.