Being one of the tech heavy-weights of Nasdaq, Apple share price had taken a severe beating in recent months after a magnificent run that saw Apple becoming the first USD 1 trillion company in United States. Shortly after that impressive feat, Apple share price lost steam unexpectedly as the stock plunged from a high of USD 230 in October 2018 to USD 145 recently.
Would Apple share price strike back in style or continue to spiral out of control? 2018 turned out to be a revelation for Apple share price as it hit the skid shortly after reaching the epic high in October. The roller coaster ride of Apple share price must be giving investors plenty of sleepless nights.
Man proposes, God disposes
It doesn’t help that Apple got off to a poor start when CEO Tim Cook announced it would lower revenue guidance for Q1FY2019 on the first working day of 2019. Following the shock announcement, Apple share price got roiled.
Among the biggest institutional investors is Warren Buffett, whose Berkshire Hathaway owned 252,478,779 of Apple shares. The roil in Apple share price caused billion of dollars of capital loss for Warren Buffett. Ouch!
Although investors are sweating over the volatility of Apple share price, the management appeared to shrug off the upheavals in the stock market as it continued to launch a slew of new products in 2018 that saw the company breaking new grounds. Three new iPhones were introduced, a new version of iPad Pro was launched, a new MacBook Air and Apple Watch Series were sold by Apple. The relentless rollouts of innovative new products paid off handsomely as Apple recorded its best-ever quarter results in September 2018.
But of course, Man proposes, God disposes. While Apple management can strive to steer the company to excellence, they cannot change macroeconomic conditions nor dictate the financial markets. Thus, retail investors must be aware that Apple share price could be in for a wild ride in the coming months as trade tensions fluctuate between United States and China.
Intriguing Apple share price
The recent correction in Apple share price should be attributed to the toxic market condition and not caused by poor business fundamentals. In fact, Apple posted a great revenue in 2018, with revenue reaching a stratospheric high of USD 265 billion. Like-wise, net income reached a record USD 59 billion. Given the solid results, the drop in Apple share price should not be attributed to its business fundamentals, but more of the overall bearish market sentiments.
In view of the falling Apple share price, the management is [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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