Apple (AAPL) Stock Down 4.8% due to Coronavirus, Is It End of Bull Run?

Apple (AAPL) Stock Is Down 4.8% due to Coronavirus Fears, Is This the End of Its Bull Run?

Coronavirus is actively affecting the stock markets and Apple (AAPL) stock is not an exception. Yesterday, the stock lost around 4.8%. In teh pre-market, AAPL has started to gain.

Christopher Hamman By Christopher Hamman Updated 3 mins read
Apple (AAPL) Stock Is Down 4.8% due to Coronavirus Fears, Is This the End of Its Bull Run?
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Apple Inc. (NASDAQ: AAPL) stock was down 4.8% at yesterday’s closing. This is indicative of many things. Analysts reportedly have many opinions about this recent drop. Some believe that the Cupertino California giant’s China sales which have dipped are the main reason. Others believe that this may be the end of the company’s creative cycle. This cycle produced a bull run for most of the last decade. It also fueled the rise of many innovations within the mobile industry. On the side of the coronavirus, many believe that the crisis in China is a major contributor and the reason for Apple stock drop.

The tech giant had recently reportedly announced that it would not meet its profit targets for this quarter. This is due to issues with its supply and demand business cycle. These optimists believe that this will pass. They also believe that the situation will be resolved as governments try to contain it. While this may be so, the damage to the profit margin might become significant. This is bound to happen if the coronavirus crisis spirals out of control. 

Apple (AAPL) Stock Decline Is due to Coronavirus and Many Other Issues

The issue behind this mainly has to do with the company’s dependence on China for most of its manufacturing. As such, the supply chains are expected to have gaps for some time. This delay is a view that seems to be shared with premier investment analyst Amit Daryanani of Evercore ISI has lowered his forecasts for this quarter. His forecast was lowered to $8.6 billion. Citing reasons behind this, he said in a weekend note that he was lowering his March-quarter revenue estimate by about $8.6 billion. He said:

“Our estimate reduction is predominantly driven by supply issues and to a lesser extent weaker demand trends in China. However, we think revenue has merely been delayed versus lost and our FY20 estimates are unchanged – though we concede this is a fluid situation and revenues could be pushed out further into the December quarter.”

The above scenario could play out for Apple. This, however, will put the tech company within the realms of taking a gamble than mitigating risk. The coronavirus will be one of the major situations affecting global business in 2020 and Apple (AAPL) stock is not an exception. How quickly the issues are resolved will affect bottom lines across many companies. 

Deeper Issues of Decline

On a broader scale, Apple (AAPL) stock has been in the decline. The shares of the technology giant have declined by 6% in the past 30 days. This is also in line with the decline of the Dow Jones. It also shows that U.S. manufacturing is evolving. 

The departure of its Chief designer last year has also shaken many. John Ives has been part of the backbone of Apple’s success since before the iPod. His departure raises questions about the company’s ability to innovate.

For now though, as companies are reeling from coronavirus, it would be too early to tell if this is the end for Apple. One thing is certain though: a dent has been made in the profits for this quarter. At yesterday’s closing, Apple (AAPL) stock prices stood at $298.18. This is a 4.75% decline in share prices in the previous twenty-four hours. 

In the pre-market, AAPL is at $ 301.02, which shows a less than 1% growth.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Christopher Hamman

Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.

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