By
Godfrey Benjamin
March 22nd, 2024
Though the companies are trying to implement measures to stay strong amid the coronavirus outbreak, their stocks are still suffering. Apple (AAPL) stock was seriously down yesterday but started to gain after hours.
Electronics giant, Apple Inc (NASDAQ: AAPL) stock dipped down 7.91% on Monday retesting its February lows and support level, even after most of its mainland China stores reopened after the coronavirus outbreak. The shares fell to the level of $266.
Then it began showing signs of recovering as the day came to an end, during the early hours of Tuesday. At the time of writing, Apple (APPL) stock has come back to $275, having added a little bit less than 3%.
Earlier, the company had warned that the ongoing coronavirus outbreak will affect its demand and supply hence significantly affecting its first-quarter revenue. Based on the information the company had by January on coronavirus, it gave guidance for the March quarter between $63 and $67 billion, against analyst prediction of about $62.45 billion.
The stock market flipped the calendar on a very promising trend after the bulls pushed the market price to test the all-time high of around $327.43 at the end of January. However, it did not last long as the coronavirus outbreak affected its operations in mainland China, where it has its largest market and also its assembly point.
Combined with price action, the stock market chart formed a double top and immediately as February began, they took a sharp nosedive retesting December 2019 support level. The bears seem to be winning the fight as the stock price continues plunging further, as coronavirus fears continue pushing investors away from the so perceived risky markets
If the current situation prevails and continues worsening, Apple (AAPL) stocks are looking to bleed much further to hit $220, which is the next support it may enjoy. With no vaccine reported successful on the deadly virus, worse times are ahead for the global stock markets. However, generally, AAPL has been doing well and once the coronavirus menace is dealt with, they may rebound to reach even higher than the current all-time highs.
Measures by Apple to Tackle Coronavirus: Will They Help AAPL Stock to Recover?
With China being the base assembly point of Apple devices and it has the highest number of reported coronavirus cases, the supply of iPhone, and other Apple products are dimmed to reduce. Eventually, the demand is catching up with Apple back at home, where it’s downing they cannot be under control.
However, in a recent memo by Apple Chief Executive Officer, Tim Cook offered all the global employees the ability to work remotely from home to counter the coronavirus disruption. He called the coronavirus outbreak an ‘unprecedented event and a challenging moment.’
He advised the employees to work remotely as from March 9 to 13 if the job type allows. This will include most of its offices in the United States like in Santa Clara Valley and also at Elk Grove areas in California, Seattle, and its international offices in South Korea, Japan, Italy, Germany, Switzerland, France, and United Kingdom.