Apple shares plunge near $250 as trading is temporarily halted

As the COVID-19 coronavirus outbreak continues to result in a rollercoaster stock market, Apple shares plunged to open at $255.94 this morning, down nearly $20 from a closing price of $275.43 on Wednesday.

Apple shares plunge. Image: Apple logoJoe Rossignol for MacRumors:

The broader S&P 500 index dropped over seven percent shortly after the opening bell this morning, triggering an automatic suspension of trading for 15 minutes.

Due to the COVID-19 coronavirus outbreak, President Trump tonight announced sweeping new travel restrictions in a live address to the nation, instituting a 30-day travel ban from Europe to the United States of America. The new restrictions go into effect Friday at midnight.

MacDailyNews Take: As Apple shares plunge, we might get our “sub-$250” wish after all.

Again, as we just wrote, “While this is likely to get worse before it gets better, panicked selling will only lose you money, not make it. Of course, it’s nearly impossible to call a bottom, but getting in at a nice low price while “others are fearful” might look pretty good in your portfolio a few quarters out. Hopefully, Apple is executing beaucoup buybacks at discount prices during this period, just as others are calmly buying stocks during the coronavirus panic.”

We’re having a panic-induced deep discount sale on Apple just ahead of a multi-year 5G super cycle. It makes a lot of sense to consider buying Apple stock on the coronavirus pullback. — MacDailyNews, February 25, 2020

Be fearful when others are greedy. Be greedy when others are fearful. — Warren Buffett

9 Comments

  1. Apple is always a longer term safe haven based on their strong cash position. In the very short run they always face selling pressure as portfolio managers take gains in Apple to offset other losses

    1. Apple is clearly in a strong cash position relative to some. It is not so obvious how long the cash will last if sales drop off. As most people’s budgets tighten, they may find that they don’t need luxury goods that Apple sells.

      Add to that Apple’s deep reliance on China. Delays of the next small inexpensive iPhone could be painful.

      Other businesses may be fundamentally more recession proof.

  2. A suspicious soul might wonder whether the Chinese blithely spread the virus around the world, cynically calculating that the deaths of a few million Chinese would be a small price to pay if the virus could lead to severe consequences for the U.S. and a president who, unlike all previous others, demands fair, balanced trade.

    1. Stupid thinking goes to the next level.
      (your thesis is that China wants to destroy USA west gives USA two months ADVANCED warning?)

      Why didn’t China just send an agent and secretly release the virus in the USA? It blows up in USA and China has TWO MONTHS to SET UP TEST KITS and protects it’s own people. So China in my fantasy is safe and destroys USA (instead of the reality we’re actually facing).

      But f-ck we know the REALITY which is that USA had two months to get ready Test Kits. But didn’t.

      So what happened in reality? Where the heck are the test kits?
      Blaming China, blame E.U etc etc. is xenophobic idiocy. Instead we should learn what tactics they’ve used to fight the virus that works. (But of course racist refused to learn)

      Xenophobic racists don’t want to see for example when countries basically follow China’s and WHO’s plan (testing, isolation, hand washing, sufficient hospital gear etc) like Singapore, South Korea and some E.U countries they manage to CONTAIN the virus ?

      South Korea had a bad outbreak because a cult with hundreds of thousands of followers , many infected hid info on their members yet by testing (20,000 tests a day at one point) they manage to contain the outbreak. Deaths less than 100.

      (China puts out a plan to destroy the USA which can be stopped simply by TESTING and other health measures ? )

      FACT is :
      Korea a small country does more tests in ONE day than USA has done in TOTAL over weeks.
      (So spreading of contagion in USA due to no tests is also China’s fault ?)

      Korea followed WHO recommendations.

      Meanwhile idiots in the West (like I’ve argued over here in MDN ) kept saying for weeks “Don’t listen to WHO it’s socialist and beholden to communist China” and “it’s RUN by a BLACK ETHIOPIAN” (?!!!?).

      Even when I pointed out The WHO team in China was led by Aylward a Canadian who led the fight against Ebola, Zika and he had USA, European doctors with him and people here posting said “Don’t listen to him, he’s working for a ‘black guy”.

      Aylward one month ago listed out the procedures to fight the virus (including need for tests kits, MRI scans, ventilators, vast amount of gear like hazmat suits etc) but nope, racists won’t listen. The racists on talk shows said don’t listen, the advisors to the president said don’t listen.

      Korea listened.

      I’m exaggerating anti Asian racism?
      USA politicians and news casters on some channels keep calling it the Wuhan Virus, the China disease while they would never call Ebola the ‘Black African Disease’ or MERS the ‘Arab Sickness’ or H1N1 the ‘USA contagion’ (yeah H1N1 from America killed 500,000 to one million plus people)

      Also Racist said “IT won’t affect White folks because (I read it here in MDN) , Chinese and Asians in general are dirty and eat dirty things, and their health care sucks compared to the West. They are MEDIEVAL”. We’ll beat it in the West no sweat.

      Dudes, the infection rate yesterday in whole of China was around 10 out of population of 1.4 Billion.

      Posters here said Tim Cook was a fool to build in China, outbreak would never be contained.

      Today Foxconn said it is resuming full production of Apple devices.

      (If you minus the two weeks for Chinese NY holidays, Foxconn was out less than than a month. The ONLY serious disruption in 30 years and due to a natural disaster)

      IDIOTS, cue the xenophobic racism. It’s gonna to kill you.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.