AAPL took the worst hit in a general dive in tech stocks yesterday, ending up 4.4% down on the day.
It follows another large one-day fall last month …
The stock opened at $180.95, briefly climbed to $181.95, but ended the day at $176.69.
Business Insider says one reason was an HSBC investor note that cited market saturation fears for the iPhone, the bank downgrading the stock. Other tech stocks also took a dive.
Apple stock was hurt in part on Tuesday by a downgrade by HSBC, after it cited an overwhelming dependence on a single product.
“What has made the success of Apple, a concentrated portfolio of highly desirable (and pricey) products, is now facing the reality of market saturation,” said HSBC […]
The Cupertino, California-based company’s shares were down slightly in premarket after falling 4.4% on Tuesday — underperforming a particularly brutal 3.8% drop in the Nasdaq — and is also down in premarket New York trading.
The rest of the FAANG stocks – Facebook, Apple, Amazon, Netflix and Google – also took a hit, but they saw a minor rally, unlike AAPL.
Several of Apple’s suppliers also suffered.
Pegatron, in Taiwan, fell 1.7%. Chinese acoustics technology supplier AAC Technologies lost 3.7%. Taiwan’s Flexium Interconnect was down 3.9%. Taiwan’s Largan Precision declined 3.7%
US suppliers have seen their own share prices slide. Lumentum, one of Apple’s Face ID component suppliers, last month reported that an unnamed customer – widely assumed to be Apple – had cut orders by 30%.
There was one small piece of good news yesterday. While many Apple suppliers have cut their revenue and profits forecasts, RF chip supplier Skyworks hasn’t – despite relying on the iPhone maker for half its revenue. However, one analyst suggested that the company may have prepared its forecast before Apple informed it of a cut to its orders.