Amid a tumultuous day for U.S. stocks, AAPL ended down 7.9%, but it wasn’t the only big tech company to sink. As detailed by CNBC, big tech companies lost over $320 billion in value today, coinciding with the worst day for broader market since 2008.
AAPL ended the day down 7.9%, which means it lost around $100 billion in value. Shares of Microsoft, Facebook, and Alphabet were all down over 6%, while Amazon fell 5.3%. The Dow Jones Industrial Average dropped more than 2,000 points — marking its worst day since the 2008 financial crisis.
As we explained this morning, the market slump is driven by two factors: coronavirus concerns and oil prices.
First, coronavirus fears are causing nervousness about the performance of shares across the market. Many companies, including Apple, are suffering the double-hit of supply problems in China and reduced demand from less shopping as consumers avoid shops
Second, and the specific trigger for the current concern, Saudi Arabia slashed oil prices over the weekend, with immediate impact on energy companies, then banks due to concerns that energy firms could default on loans, and the rest of the market as a knock-on effect.
For Apple specifically, the ongoing coronavirus situation is a major concern for investors. An investor note earlier today estimated that Apple sold less than 500,000 iPhones in China during February, down 60% compared to the 1.27 million units sold in the same month a year ago. Supply of iPhones and other Apple products is also starting to run low around the world.
Meanwhile, Bank of American analysts expect that the 5G iPhone and iPhone 9 launches will be delayed this year due to the disruptions caused by coronavirus. Apple also recently told many of its employees to work from home this week and detailed other anti-coronavirus measures.
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