Apple This week’s share price has fallen by more than 8%, clearing the value of about $ 200 billion and lowering the Dow and Nasdaq indexes. Apple officially At the bear market Along with other technology megastocks.
Apple has fallen into a bad week for the stock market, which sells stocks in almost every industry, for fear of FRB rate hikes, lower consumer confidence, rising inflation and supply chain challenges around the world. The Nasdaq Composite has fallen more than 7% so far this week, At a pace 6 weeks in a row.
Apple faces some supply chain challenges, but this week’s business outlook hasn’t changed much.
The company has usually been regarded as a “safe” place for investors to deposit money. The fact that it’s sold out along with everything else is a bad sign for other stocks and a sign of diminishing investor confidence.
Renaissance Macro Research’s Jeff Degraf told CNBC Thursday that there is no hiding place in the bear market, which includes Apple.
“For technology, when they start taking technology leadership, it’s a better sign that they’re starting to take everything,” Degraf said.
“Selling AAPL not because we know nothing about iPhone shipments or service revenue this quarter, but because we believe that once investors start selling the best names, they rarely complete in a day. Is expected to continue. ” Datatrek co-founder Nick Colas said Thursday.
This is a marked reversal from last November, when fast-growing tech stocks began to fall and Apple fell frequently. Attracted investors Those looking for a low-risk bet on technology.
Apple still has incredible cash flow, so it can withstand the slowdown and return profits to shareholders. Operating cash flow for the March quarter was $ 28 billion, compared to total revenue of $ 97.3 billion. He said he spent $ 27 billion repurchasing shares and paying dividends during the quarter.
Declining consumer confidence hasn’t started to negatively impact iPhone sales. In fact, in the March quarter, all of Apple’s businesses grew, with the exception of the iPad, which Apple blamed for chip shortages.
When CEO Tim Cook was asked about the macroeconomic situation and the impact of inflation on the business in last month’s earnings announcement, the company’s bigger problem is not a slowdown in demand, but enough to meet global demand. He said it was about making iPhones and Macs.
“Currently, our main focus is, frankly, on the supply side,” Cook said.
But even if Apple begins to feel the effects of worsening macroeconomic conditions, Apple will appeal to world-renowned brands, premium margins, major shopping center stores, and wealthy consumers around it. And continue to be a company with a collection of services. world.
If growth slows, Apple will continue to generate huge profits and sales — even if it’s gone. The most valuable company in the world.