Apple shares lost 4% for most of Tuesday. The AAPL sell-off was part of a general drop in technology stocks amid concerns about higher interest rates.
At some point during the day, the value of each AAPL share fell by about $ 5.30. That’s about $ 88 billion less than Apple’s $ 2.1 trillion market capitalization.
Update: Apple shares ended the day with a 3.54% drop.
Knowing what makes the markets rise and fall is a cryptic proposition, but New York Times The drop in tech stocks on Tuesday is attributed to a comment by US Treasury Secretary Janet Yellen that interest rates will have to rise to contain inflation at the end of 2021.
This appears to have driven Google stocks down 1.7%, Facebook down 1.3%, Amazon down 2.2%, and Netflix down 1.2%.
Time to Buy AAPL Stock?
The iPhone maker’s share price has been on the rise lately, so this is not a significant drop in shareholder value. The last time Apple stock was at this level was April 6, 2021 – just a month ago. However, it saw no growth last week after the company announced surprisingly good first-quarter 2021 financial results. Since then, the share price has dropped more than 5%.
However, anyone considering acquiring APPL can consider selling the shares. The company has been a reliable long term purchase for many years. The value of its shares since May 2, 2011 has increased by 930%.
Moreover, Yellen has no right to influence interest rates. It depends on Federal Reserve Chairman Jerome Powell and the rest of the Fed. Thus, the tech market plunge on Tuesday was a reaction to Yellen’s comment, which did not support her.
Note: Mac cult is not an investment advisor. Check with your broker before buying.