With the beginning of 2019, the shares of the brand noticeably fall in value.
August 1, 2018, Apple’s financial report, which was better than analysts ‘ forecasts – for the first time in its history, has risen to a trillion dollars. Then one share of the Corporation’s cost 207 dollars, but investors did not think to stay: until the end of September they raised the price of securities up to 232 dollars, informs Rus.Media.
Since then Apple shares are continuously falling. In late November, the manufacturer of iPhones was worth 812 billion and lost the title of most expensive companies in the world Microsoft. At the beginning of 2019, the market capitalization dropped to $ 700 billion, Apple is the fourth cost – the company has passed forward itself, Amazon and Google (Google).
The main causes of the fall of the stock
In the fall of the Apple stock lots of reasons. Including those that the company could not influence. Here are the main:
- Too sharp rise in the stock in previous quarters. He was like a bubble that had to burst.
- A trade war with China. In China the majority of Apple products, so – at any time can be included in the list of goods which are subject to additional sanctions.
- The strengthening of the dollar. The higher the value of the American currency, the less (in dollars) Apple takes on sales abroad.
- The slowdown of China’s economy. This reduces the demand for goods Apple.
But the company things are not going too well. In early January, Apple CEO Tim cook published an open letter to investors, after which the company’s shares fell 9%. Cook said that the forecast of revenue in the first quarter reduced from 89 to 93 billion dollars to 84 billion. The main reason – low sales in emerging markets, in particular, this applies to the latest innovations of the company. This is important not only in itself, but because new phones stimulate the acquisition of other company’s products: watches, headphones, subscribe to Apple Music and so on.
It came to that question about once the most expensive company in the world ask the President of the United States. He (in words) support and Tim cook and Apple. In early January, trump said that Apple is “a great company” and recalled that during his presidency, its shares grew by hundreds of percent.
Reporters immediately caught trump if not on lies, then a very strong exaggeration. In fact, the price of Apple shares since that time, trump became President, has risen only 20%. Even if you don’t count the fall of the last months, an increase of 90% – but not hundreds.
In addition, support from trump can lead Apple to new spending, because every time the President insists that the company moved production from China to the United States. In early January, trump has said it again: “don’t forget that Apple makes their products in China. I spoke to Tim cook – my friend, whom I love very much – make in the USA. Build big, beautiful plants that will stretch for miles. Build them in the USA… China is the main beneficiary of Apple, not us.”
So, Apple shares fell by a third, but most analysts believe that the company will be fine. She has a huge airbag from the money earned in previous years (more than $ 200 billion), it still generates profit. In addition, investors often dump the shares of the company one month after the presentation of the new products and start to buy them when they are nearing the release of the next iPhones.
In the end, 49% of analysts still recommend buying Apple shares, the remaining 51 – to keep available. For Apple it can be low numbers (in August recommended to buy securities, 63% of analysts), but in General this means that an even greater fall for a long distance can not be afraid.