The AAPL share has officially entered a bear market as stocks have fallen more than 20% from the high on 3 October. A stock or market as a whole is considered to be in the bear area when the price has fallen 20% or more from the highest price in the last 12 months.
AAPL entered a bear market when it fell 3.96% in yesterday's trading, giving a total decline of 20.3% in less than two months …
] It is Not only Apple, either Fortune reports that all the FAANG shares (Facebook, Apple, Amazon, Netflix and Google) are now in a bear market.
Technical investors resumed their sales of the big-cap FAANG shares, with the five tech giants who all maintain a 20% decrease or more, enough to push them into the bearer market.
The share of the alphabet stopped Monday at $ 1,020 per share, marking a 20% decline from record high of $ 1 273.84 per share in late July. Apple's inventory is down 20.3% from October 3, while Amazon has lost 26.3% of its value since early September. Netflix has hit 36.1% since its peak in late June, while Facebook's stock has fallen 38.8% since the end of July. […]
Last month, disappointing forecasts from Apple, Amazon and Facebook asked a sales suspension that continues this week. Apple fell 4% Monday after the Wall Street Journal reported that the company cut orders to suppliers for the three iPhone models introduced in September.
Goldman Sachs has just cut its AAPL target target to $ 182, referring to a " Material Risk " that the company may miss its own guidance.
Seeking Alpha ] sets the latest development in perspective.
Apple (AAPL), long a darling of Wall Street, is the newest high tech tech name to fall into a bear market. But considering that the company is still up 15% for the year , many investors are understandably confused about whether the stock is a strong buy at current prices, or potentially falling far further.
It notes that while the market was afraid of lower expected quarterly guidance and fear of "top iPhone" the actual results in the fourth quarter of the quarter were strong and the company is still forecasting revenue growth in a declining market.
The company actually achieved 20% revenue growth in the last quarter of the fiscal year, the fastest growth rate of three Years […]
The other major growth drivers were services and "other products" which are mainly wearables (Apple Watch) and HomePod speakers (over 50% YOY growth). Not only did these segments grow strongly, but accounted for 23% of the company's sales, which shows that Apple makes good progress in diversifying its business from its iPhone overreliance.
The website notes that the top iPhone, at least for now, was actually the way back in the first quarter of 2017 – and yet, Apple has continued to increase its revenue. It is stated that the key figures for investors are earnings per share, which is still expected to continue two-digit growth for a decade to come, thanks to a growth in revenue growth combined with the continued share buy-back program.
So AAPL may be in the bear market right now, and it may get worse as the market as a whole slides and investors seek less volatile alternatives than tech. However, argues Seeking Alpha This might be a good time to buy for anyone focused on long-term returns.
Check out 9to5Mac on YouTube for more Apple news: