On September 29, when (Bank of America) downgraded its rating for the company from buy to neutral and warned of weak consumer demand for the well-known (iPhone) gadgets, shares of the (iPhone) manufacturer dropped by 4.9%. Additionally, the deal destroyed almost $120 billion of Apple’s market worth.
Due to waning demand, (Apple) returns its documents discussing the increase in (iPhone) production.
The Federal Reserve officials resumed their strong language about rate hikes as the central bank worked to contain inflation, leaving investors looking to sell stocks with few places to hide. The Nasdaq 100 only had three gainers, and it lost 2.9%, virtually falling to its lowest point since June 16.
Additionally, shares of (Amazon) and (Alphabet) declined by roughly 3%, while shares of (Microsoft) declined by 1.5%.
After CEO Mark Zuckerberg, owner of Facebook, announced plans to reduce the workforce for the first time ever, shares of (Meta Platforms) plummeted 3.7%. In light of sluggish user growth, the social media giant’s shares are down 59% this year.
comforting side
Despite a significant sell-off caused by economic fears, Apple shares have been considered as a reassuring side for the remainder of this year, beating other large companies and the larger technological sector. With a market value of roughly $2. 3 trillion, the shares of the most valuable corporation in the world saw a decline of about 20% in 2022, as opposed to a 32% decline for the (Nasdaq 10) index.
Bank of America analysts led by Wamsey Mohan noted a falling demand for Apple services, and the demand for the company’s products is likely to follow, given projections of a downturn in consumer spending across regions. They claimed that the strain brought on by a high dollar will only make matters worse.
Although “Apple’s long-term outlook remains favourable,” Bank of America predicts that in the near future there will be unfavourable discretionary evaluations and assessment concerns.
However, investors are still bracing for further pain from the Fed’s rate hike, and Wall Street experts are starting to lower profit projections. In this axis, the (NASDAQ 100) is on track to have its longest string of quarterly drops in 20 years.
Since the beginning of 2022, estimates of 2023 tech earnings growth in the S&P 500 have decreased by around 6 percentage points, compared to a 4 percentage point decline for the broader index.
Apple lost its market value in one day by 120 billion dollars.
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