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Apple's value has dropped more than $ 220 billion in recent weeks. Some of the issues are unique to Apple, but other technologies have also been hit hard, including Facebook, Amazon, Netflix and Google in the FAANG group.
Whatever the case may be, the first publicly traded US company to reach a market capitalization of one trillion dollars saw its value drop to about 839 billion dollars at the time of writing this article.
Apple broke the $ 1 billion mark on August 2 when its shares hit $ 207.05. They continued to peak at $ 233.47. Today, they are less than $ 177. A loss of more than 20% places the stock in bearish territory.
The tumble does not reflect the latest financial results from Apple, which have been excellent. However, there are several reasons for this fall.
First, Apple has announced that it will stop providing figures for unit sales of its main products, down. Apple argued that it earned more money by raising prices and selling services and that it had to be judged on that basis. But this still worries investors.
Secondly, several Apple vendors have reduced their sales forecasts, the Wall Street Journal claiming that "Apple has reduced production orders for the three iPhone models it unveiled in September". This has been reinforced by more recent reports on the makers of iPhone, Foxconn and Pegatron.
SEE: Special Feature: 2018 Technology Budgets: The CXO Guide (Free PDF)
Thirdly, the market is concerned about Donald Trump's trade war with China and the possibility that this is affecting Apple.
Fourthly, the stock market as a whole is down: it benefits from a "correction" after a period of increase of nearly 10 years. Technology stocks led the charge, so technology stocks were the first to suffer. It is not clear that fundamentals have changed, but the momentum has changed. (Technology stocks have gone up, so you can bet that they would continue to rise.) Now, technology stocks are down, so you can bet that they will continue to go down … until that that they are starting to climb again.)
It may not make much sense, but tech stocks are now worth over $ 1 trillion less than they were.
Image: Yahoo Finance ZDNet Screen Capture
Until now, the consequences for the long-term shareholders of Apple have not been terrible. The price tag of $ 176.78 (see chart) is still above the price of $ 175 at which they started the year, and comfortably above the 52-week low of $ 150. Five years ago, they were half less. Ten years ago they cost less than $ 5.
And, as has been mentioned, other "hot" technological titles of the FAANG group have also suffered.
Amazon the shares peaked at $ 2,050.50. They are now reduced to $ 1,516, or $ 742 billion. At its peak, Amazon has also crossed the trillion dollar mark.
Google (Alphabet) peaked at $ 1,273.89. They are now reduced to $ 1,038, or $ 724 billion.
Facebook stocks peaked at $ 218.62 and collapsed to $ 135, valuing the company at $ 387 billion.
Netflix stocks peaked at $ 423.31 and dropped to $ 262, valuing the company at $ 114 billion.
Although they are not part of FAANG, Microsoft and IBM have also seen their prices fall.
Microsoft stocks fell from an unprecedented $ 116.18 to their current value of $ 103, valuing the company at $ 791 billion. This figure is surprisingly higher than that of Amazon or Google, and is not far from the sum of 839 billion USD of Apple.
IBM Stocks dropped from a 52-week high of $ 171.13 to $ 118.57, valuing the company at $ 108 billion – which is lower than Netflix.
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