The recent sell-off in Apple stock extended on Friday as traders and analysts continue dealing with uncertainty over how the COVID-19 coronavirus outbreak will affect Apple’s sales and supply chain.
Ryan Vlastelica for Bloomberg:
Bank of America wrote that Apple’s highly anticipated 5G iPhone could see its fall release delayed by a month as a result of the outbreak. The firm cited a conversation with an expert on the company’s supply chain, Elliot Lan. Lan also expects the launch of the iPhone SE2 will be delayed “by a few months” due to “both supply issues as well as the weaker demand environment from COVID-19.”
Shares of Apple fell as much as 4% on Friday before paring the drop to 2.4% at 11:09 a.m. in New York. The stock has fallen 13% since its record close on Feb. 12, in line with the S&P 500’s decline over that period.
Apple’s second-quarter results are expected to be released around the end of next month. Currently, Wall Street expects adjusted earnings of about $2.71 a share and revenue of $61.5 billion. The consensus for earnings has dropped 9.6% over the past month, according to data compiled by Bloomberg, while the revenue view is down 5.5% over the same period.
MacDailyNews Take: Apple stock will obviously continue to be affected by the coronavirus in the short term. This too shall pass. One year ago today, Apple shares closed at $174.52.
Fake news. Several reports says SE2 NOT DELAYED.
deep state bull
No doubt Tim Cook’s generally positive attitude towards President Tump is that both he and Apple are similarly lied about and smeared by the mass media.
How can any media outlets lie about him? They are too lazy to do anything but read his tweets. The idiot embarrasses himself. He lacks the most basic knowledge and worse he refuses to listen to anyone with experience.
Sad that there is no longer a competent conservative party in the U.S.
wow
It doesn’t really matter as most of the tech stocks have been hit hard by the virus. The travel and services industries have been hit even harder and they can’t recover those losses. Apple investors shouldn’t let one slow quarter bother them as Apple will surely make up that revenue in the remaining quarters providing the CoViD-19 problem doesn’t become worse. I think the entire market is over-reacting to this virus, but I’m not smart enough to know how far-reaching this problem is. It just seems more like fear and panic than anything else.
Where I live in NYC, everything seems quite normal, so I can’t quite grasp the world panic. I sure don’t see any point in selling off stock as it doesn’t change anything about being infected by the virus. How does a couple of weak quarters change the long-term outlook of a company? I surely don’t see why the market goes up extremely one day and down extremely the next and keeps repeating that cycle because of the virus. I’d think the DJIA would just level off or keep falling a bit more each day. Those wide point swings are so odd to me.
Anyway, I’m not concerned as a long-term investor, so I just watch the market move in wonderment, trying to figure out what really is going on.
The World economy had deep issues and all that was needed to send it spinning/falling was/is a disruption like the virus.
Stocks have been “floated” by the Fed’s stimuli for awhile, bond rates show the concern/reality, China is starving for capital and debt is everywhere.
I think there’s a lot more yet to come that will clear out the dross and be a reset for much of US sectors and others abroad.
Calling me glass half empty would be gracious.
You’re right that this could reveal or trigger some underlying weaknesses. Debt could be a big factor if the banks have overreached again like in the 2000s.
At this point I hope that the stock falls will not trigger anything else. I’m certainly not selling any stock and really do wonder what types of investors are doing so. Is it hedge funds, institutional buyers or individuals who are panicking.
You sound like that buy gold end of the world person every office has, thank god I didn’t listen to him 15 years ago, I would be poor.
Not me…hardly liquid and when its highs mimic the dollar, there’s little reason. Hedging w/ a bit isn’t foolish, tho.