Investam-HK: Apple stock fell sharply and then recovered before trading day ends
After falling more than 6% last Friday, NASDAQ: AAPL recovered abruptly closing down a 1.7% decline the same day.
February 28, 2020, Apple’s share on U.S. stock market (NASDAQ: AAPL) drop as low as 6.3%, but recovered most of its lost erasing the high decline to 1.7% before the trading day end at 3:00 p.m. the same day.
The stock’s high decline early that Friday morning is more likely due to the same reason why most stocks on U.S. market drop down – the fear of the Coronavirus (COVID-19 virus) widespread.
‘Not Surprising’
It is not surprising that Apple and its stock on the market will be widely affected, because aside from a long celebrated Chinese New Year most of their Manufacturers, suppliers and factories are in China where the coronavirus (COVID-19 virus) has started to spread.
Apple in a statement posted in their site last February 17, 2020 said, “The first is that worldwide iPhone supply will be temporarily constrained. While our iPhone manufacturing partner sites are located outside the Hubei province — and while all of these facilities have reopened — they are ramping up more slowly than we had anticipated,” adding, “The second is that demand for our products within China has been affected. All of our stores in China and many of our partner stores have been closed. Additionally, stores that are open have been operating at reduced hours and with very low customer traffic.”
With this Apple is expecting a no quota revenue for this year’s (2020) second quarter.
“What is not surprising?”
Though Apple stocks went down by 6.3%, investors still see it as an opportunity to buy more, which is a possible reason why stock abruptly went up erasing high decline down to 1.7% before the market close that same day.
It is true that the second quarter maybe a bit hazy for Apples’ revenue quota, CEO Tim Cook is confident about the tech company’s long-term prospects.
“By and large, I think this is a temporary condition, not a long-term kind of thing,” he said in an interview with Fox Business this week. “Apple is fundamentally strong, and that’s how I see it.”
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