Apple has survived the iPhone 12 announcement week, and the stock continued its month-long recovery.
Shares of the Cupertino company kicked off the week with a loud bang: up nearly +6.5% on Monday alone. Over the following days, the stock lost steam progressively, just not enough to reverse what ended up being a good week for investors.
The FAAMG ex-Apple group also performed strongly, substantially better than the S&P 500. The graph below summarizes this week’s price action.
Bang and fizzle
The week was dominated by Apple’s iPhone 12 event, which the Apple Maven covered live, in real time. Here is how the week played out:
- Monday: the big day for the stock came ahead of the October product announcements. Apple was up 6.4% on no confirmed news, probably fueled by excitement for the launch of the iPhone 12. I suspect that retail investors might have had something to do with the sudden bull rush.
- Tuesday: buy the rumor, sell the news. Although the iPhone 12 announcement did not disappoint, at least in my opinion, Apple shares dipped the most on the event day: -2.7%. Not even reports that the PC industry has been on fire helped to support Apple shares.
- Wednesday: “hump day” started with a jolt in Apple share price in the morning, likely the result of Wall Street’s reaction to the prior day’s event that was overwhelmingly positive. The stock lost momentum, however, and only managed to squeeze in a +0.1% gain for the day.
- Thursday: investors were not overly excited about yet another wave of COVID-19 cases and the impasse in fiscal stimulus negotiations in the US. While Big Tech had provided a sense of safety earlier in 2020, this week was different. Apple and the rest of FAAMG continued to drop as the week came close to an end.
- Friday: the week finished on a sour note for Apple, down -1.4%, with all of tech spinning its wheels ahead of the weekend.
Below is a chart that compares the performance of Apple stock against the S&P 500 and the industry. Apple’s dashboard continues to improve, particularly in the more recent past.
Explore more data and graphs
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(Disclaimers: the author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting The Apple Maven)