The new year started extremely badly for Apple. The value of this company’s shares fell by over 4 percent on Tuesday. Mainly because of one piece of information to which investors reacted violently.
Apple’s stock skyrocketed. All because of one decision
On Tuesday, Apple’s stock price suddenly dropped by more than 4%. The value of the shares dropped from over $192 apiece before the stock exchange closed last year to just over $186 apiece on January 2. At the end of the day, it even saw another drop to $184, but ultimately Tuesday for Apple ended at just under $186. This is the biggest one-day decline since September, Bloomberg noted.
Just moments before Apple’s share price plummeted, Barclays analysts published a new, lower investment forecast for Apple for 2024. The British holding company downgraded Apple and estimated the target share price at $160 (previously $161). Shortly after that, the iPhone manufacturer experienced a very large drop in the stock market.
Tim Long, an analyst at Barclays, stated, among other things, that the current “poor” sales of the iPhone 15, especially in China, predicted equally poor sales of the iPhone 16, which will premiere in 2024 – As the station adds, analysts they noticed declining iPhone sales (especially in China) in October 2023. This was partly the result of reports that the Chinese authorities would prohibit their officials from using equipment from an American manufacturer.
The downgrade of Apple (and a significant drop in share prices) was such an important event that it affected not only the shares of other companies, but also currencies and bonds. “All the declines today in shares, currencies and bonds started a few minutes after eleven o’clock. Only one piece of information appeared then that could be considered important, so yes – the dollar went up by 6 cents today and the WIG 20 fell by 1.7 percent. because Apple got a worse recommendation,” noted journalist Rafał Hirsch on the X website.
in separate material that Apple is not the only electronics manufacturer that is losing money in the new year due to concerns about weak (or at least slightly weaker) sales. Shares of TSMC, a large manufacturer of processors (including those for iPhones), fell by over 2 percent, and Foxconn, which is Apple’s main subcontractor, by 1.33 percent. Further price declines by 2%. Samsung Electronics and SK Hynix were included, and 1.78 percent LG Electronics lost – says CNBC.
Source: Gazeta
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