Apple finished the Monday trading session, on November 23, down 3%. This was the worst day for the stock in November, despite the S&P 500 having climbed nearly 0.6% and the Nasdaq, 0.2%.
With the movement, shares are now worth $113.85, the lowest since November 3. From the all-time peak reached on September 1 of this year, Apple is off nearly 12% and back in correction territory.
Why the stock dipped
It is not crystal clear what may have led to the stock dipping this much on the first day of the week. But one can speculate a bit.
Notice below that Apple generally followed the ebbs and flows of the S&P 500, Nasdaq and FAAMG peer group through 1 p.m. EST. At that point, however, shares began to descend, as the rest of the market held up well – and even recovered a bit later in the afternoon.
Two pieces of news came up in the afternoon that could help to explain the share price fizzle. To be frank, I do not think that either were significant enough to push the stock lower. In any case:
- Commission waiver: Apple extended its App Store commission discount to providers of digital classes and events from December 2020 to June 2021. Worth noting, the company had already given in on the commission charged of small developers making under $1 million per year. It is possible that investors saw today’s news as yet another chink in the App Store’s armor.
- A bad apple: Apple chief security officer was accused of offering to donate 200 iPads to the Santa Clara Sheriff's Office in exchange for four concealed carry permits. This incident seems to have virtually nothing to do with the company, other than a potential “bad taste” in investors’ mouths regarding the integrity of Apple’s executive team.
But take a step back. On Monday, stocks surged due to another round of positive news regarding a vaccine to prevent COVID-19. The main beneficiaries, in this case, were cyclical and small-cap stocks. The relative losers were large-cap, growth, tech stocks, like Apple.
It makes sense, therefore, that the Dow Jones and the Russell 2000 indices outperformed the tech-rich Nasdaq on Monday by 90 and 160 basis points, respectively.
Lastly, but no less important, Apple has gotten a bit of tough love from one Wall Street expert. Credit Suisse’s Matthew Cabral, who has a “hold” rating on the stock, released a research note on Monday. In it, the analyst says:
This may have been enough to turn Apple investors’ mood sour at the start of the last week in November.
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