Apple Shares Plunge On Mizuho Downgrade
Shares of Apple Inc lost around 2% on Monday recording its second day of losses in a row due to the rising concerns regarding the company’s skyrocketing stock price. Apple shares also fell last week after news of the company using modem chips with slower download speeds in their next iPhone units.
The company’s shares then have fallen by as much as 7% in just two trading sessions following the downgrade from Mizuho Securities who have cut its rating on the company from buy to neutral and its target price from $160 to $150.
Apple shares slumped by as much as 3.6% to $143.59 but remains 23% higher this year. The stock also has risen up by 185 points on the Dow Jones Industrial average falling a couple of points behind other companies such as Mcdonald's and Boeing.
Most technology shares under the S&P 500 came under pressure with the technology sector falling 2.7% last week and more than 2% on Monday recording the sector’s worst performance during the year.
According to analysts, the stock has been able to outperform year to date caused by the rising enthusiasm over the company’s upcoming products set to be released later this year.
The stock went below its 50-day moving average on Friday before jumping back above the line during the session’s close although the stock dipped b below its 50-day moving average once again during Monday’s session. Despite this, the stock remains 14.1% above its 200-day moving average at $127.28.
Apple is currently the largest market capitalization stock under the S&P 500 and is ranked third all over the world with its stock standing at $9.1 billion falling behind Tesla at $10.5 billion and Alibaba at $16.7 billion.
The decline in Apple’s shares has weighed in on most tech stocks on Friday sending the S&P technology sector down by 2.7% and more than 2% on Monday recording the sector’s worst two-day decline in the past year.
Shares of Apple suppliers such as AMS AG and STMicroelectronics who supplies the company sensors and chips in Europe fell by 9% and 8% respectively. The Stoxx 600 Technology index then recorded its biggest fall in almost a year at 3.6%. Taiwan Semiconductor Manufacturing Co who supplies Apple’s A11 chipsets alone which will be used in the next series of iPhone flagships experienced a decline of 2.4% in their shares. Other tech giant shares such as Samsung and Tencent also fell 1.6% and 2.2% respectively.
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