Since the last month, Apple is worth 20% less. Gone is the one trillion dollar company with the decline in recent weeks, not only Apple, but the entire technology sector, even affecting the companies that produce the components.
When the price of a share falls more than 20% over the maximum price of the last 12 months, it is known in stock market slang that the trend of this value is bearish. This means that Apple's price is more likely to continue to decline, at least in the next few weeks.
As we said, we are not just talking about Apple. The rest of the technology companies are behaving similarly, for this we can see examples of Facebook, Apple, Amazon, Netflix or Google:
Tech investors resumed selling large-cap FAANG shares, with all five tech giants seeing declines of 20% or more, enough to push them into bear market territory.
Alphabet shares closed Monday at $ 1,020 a share, marking a 20% decline from its all-time high of $ 1,273.84 a share at the end of July. Shares of Apple are down 20,3% from their October 3 high, while Amazon has lost 26,3% of their value since early September. Netflix has fallen 36,1% since peaking in late June, while Facebook shares have fallen 38,8% since late July.
Last month, disappointing forecasts from Apple, Amazon and Facebook fueled a sell-off that continues this week. Apple fell 4% on Monday after the Wall Street Journal reported that the company cut supplier orders for all three iPhone models unveiled in September.
Analysts corroborate with their target price estimates. In Apple's case, the market analyst Goldman Sachs sets as a target price the current price of U.S. dollar 182. Others, on the other hand, are betting on the long term with technological actions, because in the long term, the results will drive the action again. That is the case of Seeking Alpha:
Given that the company is still up 15% on the year, many investors are understandably confused about whether or not the stock is a strong buy at today's prices, or possibly expected to fall further.
The news of the last weeks in relation to no longer offer the number of iPhones sold, the alarm light has turned on more if possible.
