Apple’s stock price fell 22.6% from that in September, vanishing by $532 bn

Author at TechGenyz Business
Apple Stock Price
Credit: @einfachlaurenz | Unsplash

The reports of foreign media states that Apple’s stock price had fallen just 12 trading days, it dropped by more than 20% from a high, and the market value went down by more than 500 billion US dollars. On the Nasdaq Stock Exchange on Friday, in the United States, Apple’s stock price fell from 3.50 US dollars to close at 106.84 US dollars, which is a decrease of 3.17%.

The closing price of Apple on Friday fell 22.6% from the intraday high of US$137.98 that was seen on September 2 and its market value evaporated by about US$532 billion. Apple once announced a 1:4 stock split, and in August before the news of the stock split was released, Apple’s stock price heightened.

The drop in Apple’s stock price could be due to the company’s recent product launch event. Apple had recently released some new products and some software updates, including Apple Watch Series 6, iPad Air, and fitness service, as well as Apple Service Pack named Apple One.

In this new product launch event, apart from Apple not announcing any new iPhone products, the most attractive lack of Apple One is that it does not provide a connection to iPhone hardware. “We believe that it is difficult to get users to leave competitive music, video, or game services because users are often very loyal to these services.” Toni Sakonagia’s/z research analyst said in a report. She also said, “We still believe that Apple should look for more creative service packages and bundle its hardware + services into an integrated subscription package.”

This also happened at a time when large-cap technology stocks encountered investors’ high cash-outs and carried out widespread selling. The Nasdaq Composite Index shows, where technology stocks have gathered for a period of time, and that it has been moving ahead and from there has entered a correction period.

The index has fallen more than 10% from its high on Friday. This could be due to overvaluation and rapid rise. Apple’s stock price soared 21.4% in August, mainly due to the company’s stock split and thus it seems strange in this new fall scenario. The stock split however does not affect the company’s fundamentals or the intrinsic value of the existing stock price.

However, some analysts are of the opinion that the stock price rise at that time was based on its supermarket value status and history of having quality products. American research venture capital firm Loup Ventures’ Gene Munster said that the most striking feature of the launch is that the company “sell itself cleverly to consumers.”

Muster also told that “They do have good products, and consumers see a value premium.” Apple’s market value was $1.827 trillion as per the US Stocks on Friday.

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