Apple lost $100 billion in market value in trading today

Today in Wall Street panicking, er… trading, Apple shed $100 billion in market value while Microsoft plummeted by $83.6 billion as the broader market had its worst day since the 2008 financial crisis, thanks to continued concerns about the COVID-19 coronavirus and plunging oil prices.

Ari Levy for CNBC:

Apple market valueAmid the worst day for U.S. stocks since the 2008 financial crisis, the five most valuable tech companies lost $321.6 billion in value, with Apple accounting for almost one-third of that sum.

Shares of the iPhone maker plunged 7.9%. Microsoft, Facebook and Alphabet each lost more than 6% and Amazon fell 5.3%.

Monday’s market plunge, which sent the S&P 500 and Dow Jones Industrial Average to historic losses, was sparked by the ongoing spread of the coronavirus and tumbling oil prices. Saudi Arabia on Saturday cut official crude selling prices for April after OPEC talks collapsed a day earlier.

Only nine members of the S&P 500 ended the day in the green, and none were from the tech sector…

MacDailyNews Take: Yeah, that’s not an overreaction.

30 Comments

  1. I haven’t lost any money on AAPL since I haven’t sold my stock. It’s still worth a lot more than I paid for it. If I sell now what would I buy instead?
    I don’t know who is selling and I sure hope that it is not the fund managers for my 401k.
    This virus will blow itself out in the next few months and this type of panicking is really for nought.

  2. Before you assume it is an overreaction, imagine if the US went on lockdown like Italy. Investors can imagine that, and the uncertainty (not panic) is moving their investment decisions.

    1. Thanks for reiterating the point I have been making over and over. It’s the WE DON’T KNOW WHAT IS GOING TO HAPPEN NEXT that is causing the market to tank. It’s not the media, is not facebook or twitter, It’s a bunch of traders who have hundreds of data streams they look at every day that make these decisions, oh, and some algorithms that act autonomously. Americans in the bottom 80% of the wealth distribution 6.7% of the total stockmarket. Those are the people who are on facebook and twitter and who are panicking. If they all sold all their stock at once, the market would hiccup.

      1. Disagree. We do know what’s going to happen. Let’s say sales this quarter are only 1/3 of what they are for a normal quarter. By June this is all over with the virus. The bigger threat is some dem/communist in office, which will make these drops seem like chump change. We’ll see market dump over 50% if one of the communists gets elected.

        Anyway, lets say two quarters of sales only have 1/3 their normal revenue. Very significant. But how much should you devalue a cash machine that’s going to go back to pumping out that cash after the virus stuff is over, over it’s life time. 5%, 10%? Does it make sense to discount it 25%? No way, 1 or 2 quarters just isn’t worth that much. So pretty much everything over 10% is panic selling, and I suspect Apple is mopping up stock at discount prices.

        I know I’m going to continue to buy while everyone is scared. Best way to make money. And then sell when everyone is feeling brave. Old adage, and it’s true. But it’s easier said than done for most people.

        1. Well it’s good you have the future all worked out.

          The Apple share repurchase program cannot change instantly. The most recent program was authorized on April 30, 2019, and Apple already used ~$116 billion of the $175 billion authorized by the end of 2019. So Timmy has less than $60 billion at his disposal to burn now. It also means that every dime Timmy spent up until now buying stocks at historic high prices has practically been Apple burning money at the racetrack. For Apple to gain board approval for more buybacks, it will have to follow the procedure and announce the plan in accordance with the Securities Exchange Act, Rule 10b5-1. Undoubtedly Apple will accelerate this, but it won’t happen tomorrow. It’s also a foolish use of cash, but whatever. The true god that many people worship now is the stock market, not that they would ever admit it.

          The market is in the process of taking a dive because the bubble was highly inflated, some much moreso than Apple. But as a major outsourcer to China, Apple and its contemporaries all screwed themselves buying all the eggs exclusively from Xi’s henhouse. But the blame goes further. Trade relations are at a bad state even with formerly friendly nations and the endless stimuli only pumped up stocks to more absurd levels while main street wages barely ticked up. You can thank the current administration for at least part of the overpressurized stock market, even if it wasn’t the orange idiot who stuck the pin into the balloon. He’s the one who told you that steady growth consistent with increases in cash flow and fundamentals wasn’t acceptable. He somehow convinced the new GOP base that it’s better to debt spend & stimulate your way to inflated stock prices. Value investors like Buffett and others stepped off the train — theyfor weeks have been sitting on the sidelines watching insane stock valuations disconnect from reality. You should be glad that stock prices drop only 50% if cash flow drops by 2/3. We shall see how this correction plays out. The underlings around the POTUS should feel glad that all blame can be placed on the virus so nobody has to be thrown under the bus.

          And most Dems aren’t blaming the POTUS for the stock implosion either. Your narrative is already tiring however, attempting to assign blame for the market drop to an unnamed candidate from the opposite team who won’t be selected until next autumn. Are you truly that much of a political hack to try that tenuous of a blame game? Either the economy is as strong as the POTUS says it is, or it isn’t. Don’t project absurd BS into the future to protect the Orange Messiah. Just know that the debt dug in the last 2 years will have to be repaid in the future, with interest.

          Just go ahead and keep buying stocks if you know this is all short term games. You go ahead and project when Apple gets its next shipment of Chinese built phones and leave political mudslinging out of it. If you want stock prices to recover instantly, then the POTUS needs to stop tweeting and start listening to global healthcare experts and deploying serious health assistance to places asking for it. Right now he’s deployed Pence to tell everyone that the Government is Here to Help while he tweets his hunches and munches on disinfected hamberders under self-quarantine. That’s right, Tough Guy isn’t receiving visitors. https://www.politico.com/news/2020/03/09/doug-collins-trump-self-quarantine-124523 Lying to people claiming the press is the enemy helps no one. If anything, it undermines effectiveness of anything the POTUS might need to do in the future. If the Prez goes into quarantine and his officials are wearing masks, how stupid is it to make fun of any public overreaction?

          Note: you will be unable to identify one candidate for office who is actually pushing communism. There is an official communist party in the US and it hasn’t nominated any candidate for president. If you read anything they have written, it’s as critical of Dem leadership as it is of GOP leadership. Funny then that you attempt to conflate all things left of you into one convenient label. When are you going to get serious and start using real data instead of wildly inaccurate labels? Or is that what the walking dead GOP does now?

          1. I met a zombie in my store in 1984. He took LSD with Steve, and taught us all the meaning of life. As a zombie, he really knew life and death. I miss those days, now I just pontificate on a Mac message board because that’s all I have left after decades of retail store management. I realize it is the equivalent of “get orf mah lawn!” but as a cranky old curmudgeon with grandkids sick of my Steve Jobs-in-shop-in-1984 stories they’ve heard umpteen gazillion times, I feel good coming to tell you morons why I’m smarter than you. So there, dammit. Get off my effing lawn! Steve Jobs walked in it once, you know. So git!

      2. I also DISAGREE. The markets NEVER know what is going to happen next a daily occurrence. Bottom Line: This is nothing more than the irresponsible media choosing sides in the 2020 election and overreaction to the virus is off the charts. A new LOW for biased journalism whose circulation numbers are tanking …

        1. This is not rocket science. Rocket science is based on solid facts acted upon by proven theories that have withstood all challenges.

          This is gambling, plain and simple. Some will never understand that.

          1. Because some will never understand that, and because I am a cynical so and so, I’ve decided to cynically but Apple shares because, cynically or not, I can smell an extreme profit opportunity. Thanks for the free money, Pipeline Timmay!

          2. There are no guarantees with investing, but well thought out actions can better the 50/50 odds of gambling. Kind of like entrepreneurship. Kind of like life.

            I guess you side step gambling by mattress banking…employing the “solid fact” and “proven theory” that you’re guaranteed to have less when you need to use it (inflation guarantee)?

            1. If you’re seeking to “win”, while leaving open the possibility of losing, you’re gambling.

              I don’t do the mattress either, though it’s the lowest risk. I just spend it all then make more.

          3. “If you’re seeking to “win”, while leaving open the possibility of losing, you’re gambling.”

            Welcome to life. By your own definition just living life is gambling.

            “I don’t do the mattress either, though it’s the lowest risk.”

            Then you go on to confirm that your own behaviour involves risk which by YOUR definition is… wait for it… gambling.

            Your hypocrisy is staggering. Wow.

  3. The Real News — AAPL Stock prices over the past year: $150 Jan 2019 . . $175 May 2019 . . $200 June 2019 . . $210 Sep 2019 . . $270 Dec 2019 . . $324 Feb 2019 . . AAPL closed at $266 on March 9, 2020 . . . Basically, the only way you “lost” money is if you bought AAPL after Christmas then sold it today . . . while the headline says “Apple lost 100 Billion dollars in market value today” — the fact is that Apple’s Valuation (at $266 share) is billions of dollars higher than it was most of 2019.

  4. No losses here as a long-term shareholder. I’m just hoping Apple has bought back some stock at these discount prices. I’m hoping the more stock Apple buys back, they’ll give higher dividends in the future. Apple is rather frugal so I’m hoping for something that won’t likely happen. I read some comment about Apple not being able to buy back stock whenever they want and that’s something that really disappoints me as I would hate for Apple to miss out on this opportunity.

    I’m not worried at all with this current share price drop as I believe it’s a temporary thing and I’m quite confident that when the virus scare goes away, the big investors will pile back in and consumers will start buying Apple products again. Even with this relatively steep share price decline Apple is still a trillion-dollar company which is nice to see. Only Apple and Microsoft remain as trillion-dollar companies as Amazon and Google have completely fallen out of that range.

  5. Singing……Let it falls, let it falls, let it fallssss. OMG!, I am so depressed, I didn’t even check my portfolios. However, I’ll check when AAPL is at $400 a share.

  6. $100 billion? Big deal.

    Thanks to annual > US$ 1 trillion deficit spending, the CBO projects that the US national debt is on track to exceed annual GDP before 2030. That’s right, friends. In the current generation, the formerly most productive country in history could switch from being a net producer to being a debtor and net drag on the global economy. Who would have imagined that Wall Street shell games don’t actually provide meaningful work or productive output?

    Note that when the current orange idiot entered, the US budget deficit was $US 438 per year. Still unacceptably high, but a huge positive achievement considering what happened in 2008-2009 when, yes, bipartisan stimulus rocketed annual deficits to (then) new records. Why did the current administration feel the need to repeat the game if the economy was so strong???

    Now the bubble is in the midst of its predictable burst and it’s likely that the interest on the debt will easily wipe out any paper gains the market recorded from 2016-2020. Other global events like Brexit and self-elected trade wars could compound the economic headwinds for everyone.

    The last few years of paper gains primarily rewarded the same corporations that outsourced everything they could to China, while the administration underfunded promised investments in infrastructure, education, and healthcare. How could the annual budget deficit triple in just a few years? First you employ dramatic trickledown tax games, then you increase military spending 23% while simultaneously emptying the executive branch of any law enforcement or tax experts who ensure that white collar crime is held in check. Then you go golfing and tell everyone to ignore the CDC when it attempts to guide people through one of the more acute health scares in recent history.

    A golden retriever would handle the office better than the Orange Baboon attempting to govern from Maralago now.

    1. “Note that when the current orange idiot entered, the US budget deficit was $US 438 per year. Still unacceptably high, but a huge positive achievement considering what happened in 2008-2009 when, yes, bipartisan stimulus rocketed annual deficits to (then) new records.”

      “Note” Mike is an “idiot.” Thank you for proving what is routinely present your cherry picking half truth criticisms of the GREAT “orange” one. My favorite color, BTW. 🤣

      “When Obama was sworn in on Jan. 20, 2009, the debt was $10.626 trillion. When he left office on Jan. 20, 2017, it was $19.947 trillion.”

      That would be cumulative national debt since 1969 the last year the federal government balanced the budget.

      Your cherry picked fact focusing on the short term, yearly budget deficits, is ridiculous when you look at the complete debt picture of all presidents. The “teaching moment” preachy president for a FACT is the all-time DEBT KING more than every president that held office before Obama, COMBINED.

      Grasping at political straws is no way to go through life, Libtard “baboon”…

      1. Goeb your facts are incorrect.

        you also refuse to explain why the supposed greatest economy in history needed record new deficit spending. your pumpkin prez overinflated the balloon

        in addition to debt loading taxpayers, the reckless policies will end the bull run and clobber coal & oil companies

        hope you do well on your interview for work at Foxconn WI.

        1. “When Obama was sworn in on Jan. 20, 2009, the debt was $10.626 trillion. When he left office on Jan. 20, 2017, it was $19.947 trillion.”

          Cherry picking yearly figures and obviously you don’t understand the two components of USA debt.

          Whatever…🙄

          1. Context.

            This graph is a couple years old so ignore the budget projections. However I like the format. It is particularly helpful because it shows not only annual budget (red bars) but also that budget as a percentage of GDP (blue trendline). Some people think that only the blue line matters. I disagree, but here you have both.

            The sum of accumulated deficits, plus borrowing costs, equals the total debt. I will leave it to math expert Goeb to integrate each debt across the presidency — be sure to remember that the first year of any presidency uses the budget inherited from the preceding administration!

            As you can see, the post-WW2 boom period with highly progressive taxation allowed the USA to pay off its war debts, fund the Marshall Plan, the GI Bill, the Interstate Highway System, etc, and still have money left over well into the mid-1950’s.

            Then the USA lost its way. It allowed itself to get pulled into Korea, Vietnam, Cuba, etc. Even in years the USA wasn’t conducting foreign adventures, cold war expenses were high. Deficits grew from the mid-1950’s to 1992. In 1992, Slick Willy Clinton was elected and he turned out to be one of the most fiscally responsible US presidents of the last 60 years. Every year the budget improved, with surpuses achieved in 1998-200. The dotcom boom also helped. Without cutting tax rates or slashing meaningful regulation on behalf of evildoers, federal income poured in and the federal debt albatross was tamed.

            Then came Sept 11, 2001. Understandably, Dubya Bush was totally unprepared for the disaster. Business crashed for a few years. It would have recovered fine on its own but Bush made horrid mistakes. He started 2 foreign wars which cost at least $US 5 trillion during his presidency alone. Those expenses were NOT put on the annual budget. during his presidency. Dubya also passed unfunded educational testing mandates and Medicare Part D, and worst of all provided little to no banking oversight as public debt spiraled out of control. The economy crashed on his watch again in 2008. In Oct 2008, Bush passed the first of a series of bank bailouts.

            The graph clearly shows that as businesses faced the sharpest downturn in a generation, tax receipts dried up. With bipartisan corporate welfare, Fed juicing, and Quantitative Easing, it took the next few years to recover. BUT LOOK AT THE SLOPE OF THE GRAPH. The recovery was as fast as any other in recent history. By 2016, the deficit was back to a level no greater than what Dubya Bush ran at the peak of his Iraq campaign. I personally think the corporate welfare was way too generous and Obama didn’t do enough to promote domestic small business, but he certainly didn’t hold back the recovery. The recovery was real.

            Then Tweetie was elected largely on the promise to undo everything that occurred during the prior 8 years. Deficits immediately shot up and pressure was put on the Fed to slash the prime rate during the “strongest economy in history”. A sugar high spurred on the stock market and the Fed drenched all its gunpowder. Now the pin has popped the bubble and Orange Chosen One owns this economy. As of 1st Qtr 2020, the federal government has ~ $US 1 trillion deficit and the administration has promised to prepare bailouts and stimulus which will dig still more debt.

            In other words, the 2019-on deficit projections shown on this graph are underestimates. We shall soon see US deficits exceed anything you saw during those hated 2009-2016 days when steady economic progress occurred.

            You don’t have to keep trying to defend this incompetent administration, Goeb. It’s okay to admit that poor old Donnie is in way over his head.

            1. “You don’t have to keep trying to defend this incompetent administration, Goeb.”

              No, I keep trying to offend clueless Mike who is totally DISHONEST and a JUVENILE sonny that is clueless to the great accomplishments by a great president! 👍🏻🇺🇸🦅

      1. Neither. I am not a Democrat. As an independent, I haven’t voted for a presidential candidate from either corrupt mainstream party since George H.W. Bush.

        For too many reasons to count, I will never support the current GOP dementia patient. Nobody knows why you do, you haven’t provided any reasons why you your party can’t come up with a competent candidate.

      1. That would be an excellent improvement. Goldens are amiable and they don’t tweet lies incessantly. On average they are probably better at math than the current POTUS too.

        Tweety in Chief has spent 4 years telling everyone he will release his tax returns, which are the most beautiful tax returns in history, it’s simply that he can’t figure out how to do his taxes, it’s too hard and he claims he needs the IRS to finish an audit — which explains the slashing of IRS funding.

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