These hits are are massive side swipes that is driving their stock down with analysts now questioning whether Apple has finally peaked.
Last night night Apple took another hit with their share value down 14% from the April 28 high of $134.46
It was the fifth-straight daily loss and tenth in past 11 trading days.
From a technical perspective, Apple stock has fallen below its 200-day moving average of just below $121, and done so on heavy volume.
“This is a very significant point in time for Apple,” said JC O’Hara, the New York-based chief market technician at FBN Securities. “When people start to see a stock everybody owns trade down, they don’t want to be the last one selling it.”
Apple’s latest drop began on July 21 and accelerated with the stock recording its steepest post-earnings tumble since January 2013 after disappointing iPhone sales rekindled concerns over whether the company can keep making must-have products.
“With 74.5 million iPhones sold in the December quarter and the iPhone so important to earnings, the worry is it will get tough for them to post year-over-year growth,” said Mike Walkley, an analyst at Canaccord Genuity in Minneapolis, who rates the stock a buy. “Moving through the technical average then really exacerbated it today on big volume.”
The frenzy comes after Apple’s retreat on Monday dragged it more than 10 per cent below its 2015 high, meeting the definition of a correction. The slide worsened to 14 per cent on Tuesday in New York
Yahoo Finance said “First, Apple is an incredibly profitable company and its stock remains relatively cheap based on pretty much any valuation metric. Second, stocks don’t need a “reason” to fall and Apple may merely be in a consolidation phase after a phenomenal 2-year run that saw the stock appreciate nearly 75% vs. a mere 24% gain for the S&P 500. Apple’s performance over the past 5- and 10-year periods is even more extraordinary and this “correction” may prove to be yet another buying opportunity.
So far, analysts are taking a “remain calm, all is well” view of the recent price action.
“The extent of the acceleration to the downside has been different than at other times of selloff,” Donald Selkin, who helps manage about $3 billion as chief market strategist at National Securities Corp. in New York, said by phone. “It’s a technical breakdown that snowballed. The question is, where is the fundamental change that people can’t wrap their heads around?”
While Chief Executive Officer Tim Cook has succeeded in introducing an entirely new category with the Apple Watch, sales remain modest, indicating that Apple will have to keep relying on the iPhone to fuel growth.
Losses in Chinese equities, where almost $4 trillion was erased from June to July, may leave consumers with less money to buy gadgets in a market Cook expects to become Apple’s biggest. Apple got 17.4 percent of its revenue from China in its last full-year reporting period, Bloomberg data show.
Apple, the world’s most profitable mobile phone maker, has denied working on a plan to market communications services directly to consumers and bypass the telecom companies on which it has long relied to sell its products.
Business Insider had on Monday reported that the iPhone maker was testing a so-called mobile virtual network operator (MVNO) service in the United States, which would involve it renting capacity from one or more network operators to sign up customers to its own phone and data plans.
The mobile phone maker is also in talks with European operators about such an arrangement, the website reported.
“We have not discussed nor do we have any plans to launch an MVNO,” said an Apple spokeswoman in a statement overnight.