It was a tough day for the bulls in Apple stock. Shares in the Cupertino-based company fell 3.6%, the third-worst since the 2020 U.S. presidential election and the announcement of the first COVID-19 vaccines.
Apple Maven is looking at what might have gotten the AAPL spinning on Tuesday. Meanwhile, Apple shares have returned to the correction zone, that is, a double-digit decline from the peak.
Apple Day News
Apple’s affairs weren’t the only thing that influenced AAPL’s stock price. Below are the most likely catalysts that drove Apple stock down on May 4:
- The battle between Apple and Epic Games over App Store politics continues. Only the first two days of antitrust litigation are left behind, which is expected to turn into a multi-week saga. While the outcome is not yet known, the uncertainty itself could be a bearish force pulling Apple stock with it.
- If litigation wasn’t enough, the longtime Wall Street bull looked a little less worried about the App Store. Morgan Stanley’s Katie Huberty saw “softer-than-expected” data for the App Store for April and saw the App Store’s growth in the third fiscal quarter drop quite sharply from 19% to 11%.
- Softness seems to have been widespread in the marketplace and was not limited to Apple stock. Comments by Treasury Secretary and former Fed Chairman Janet Yellen about the need for rate hikes “to keep our economy from overheating” likely helped put pressure on tech and emerging stocks.
Key figures of Apple stock
After a rally in early April, Apple stock reversed sharply following financial results for the second quarter of its fiscal year. Here’s a quick breakdown of some of the key metrics for Apple stock:
- Unchanged for the year compared to the S&P 500 12% and the Nasdaq 7%.
- A decrease of about 11% from a January peak of $ 143 per share.
- Worth about $ 2.1 trillion and, again, is in danger of falling below $ 2 trillion – a 6% drop from here will do the trick.