Apple stock opens below $100 as whole market suffers losses over China growth doubts

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$AAPL stock has opened below $100 in the first minutes of trading, erasing any gains since October 2014. Apple’s stock officially opened at $95.12 but has corrected slightly upwards since to circa $101. The fall in share price saw Apple’s market capitalization lose about $60 billion dollars in value today. Although any fall in price is bad news for the company, the 7% fall should not be taken at face value.

The whole market is down with losses across the board: the S&P saw a 5% overall fall — the largest one-day drop for four years. Technology stocks are being affected as much as any other sector. Twitter, Alibaba, Tesla and Netflix all saw falls in the double digits.

The main reason for the stock fall is knock-on effects from China. In general, investors are concerned that falls in growth in China will have impacts on company performance around the world. For Apple, this means much of the fall is due to speculation that Apple sales will be affected by the faltering Chinese economic growth. Obviously, a problem only truly exists when Apple sales are shown to fall.

So far, it doesn’t seem like that is happening. Apple continues to tell investors that they are seeing strong sales growth for their products. Earlier today, Tim Cook emailed CNBC financial reporter Jim Cramer with rare comments on Apple sales outside of normal quarterly financial reports. In the email, Cook said iPhone activations actually accelerated in the last few weeks.

Time will tell whether the fears of Chinese economic collapse are realized but expect the market to remain volatile in the coming days. Longer term, look forward to the reception of Apple’s new product releases and statements at the next earnings call for a clearer picture on company outlook.

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Comments

  1. degraevesofie - 7 years ago

    “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.” — W.Buffet

    • dfresh1988 - 7 years ago

      This website, as an example, posting semi-informed economic information causes more fear and panic in the typical fanboy investor reading this stuff than anything else. 9to5 really should stay out of the stock reporting business. If they choose to continue reporting this dribble, whoever is writing it should at a minimum include a standard FTC disclosure at the end. For all we know, 9to5 wants to incite panic so their staff can buy apple stock at $95 and sell at $105 an hour later.

      • twelve01 - 7 years ago

        It seemed like a fairly neutral article too me. Dial back the paranoia.

  2. lkrupp215 - 7 years ago

    And just now AAPL is UP + $1.67 at $107.43. This article is ancient history. 9TO5 should stay away from financial punditry.

    • chrisl84 - 7 years ago

      Apple is UP 6 dollars (or so) over 12 months…..is that something to brag about?

  3. modeyabsolom - 7 years ago

    Apple is up to just over 107 Dollars currently. While Google is still down. So things aren’t so bad after all! Lol

Author

Avatar for Benjamin Mayo Benjamin Mayo

Benjamin develops iOS apps professionally and covers Apple news and rumors for 9to5Mac. Listen to Benjamin, every week, on the Happy Hour podcast. Check out his personal blog. Message Benjamin over email or Twitter.