Shares of Apple Inc. fell on Thursday, with the stock now around 22% below its January peak as a sell-off in tech stocks spreads from the most speculative stocks to the world’s largest companies.
The stock fell 2.7% to $ 142.56 and is trading at its lowest since October.
Apple’s crash erased about $ 700 billion in market value from its record on January 3, a crash that allowed Saudi Aramco, which benefited from the surge in oil prices this year, to outpace the tech giant. as a world first most precious company earlier this week.
Widespread technological weakness was spurred by concerns about inflation and rising interest rates. The Nasdaq 100 Index has dropped nearly 6% in the past four days, on track for a sixth consecutive negative week, its longest losing streak since 2012.
“Sentiment is very depressed and inflation uncertainty will continue to complicate the picture,” said Keith Lerner, co-chief investment officer and chief market strategist at Truist Advisory Services.
“Even though prices are getting lower, we need a spark to start getting us up and I don’t see one.”
While the heavy Nasdaq 100 has been under pressure all year, Apple’s decline has been relatively recent.
The stock fell nearly 10% this week alone amid growing concerns over an economic slowdown. It’s a sudden turnaround for Apple from about six weeks ago when shares were trading near a record high.
The stock is on track for a seventh consecutive weekly decline, which would represent its longest such streak since November 2018.
Apple continues to address supply chain challenges that the company predicted would cost $ 4 to $ 8 billion in revenue during the current quarter. However, its solid balance sheet, massive profits, and loyal customer base have isolated it from some of the turmoil in the tech industry.
The stock is still outperforming the Nasdaq 100 tech index, which has lost nearly 30% of its value this year, compared to Apple’s year-to-date decline of around 19%.
Lerner suggested that the weakness of Apple and other big tech names could be a sign of a bearish process in the markets. “You want to see the generals fall to find a good bottom, so this could be good from that perspective, although we can always get more oversold.”