It has been a tough day for Apple stock bulls. Shares of the Cupertino-based company dipped 3.6%, the stock's third worst performance since the 2020 US Presidential election and the announcement of the first COVID-19 vaccines.
The Apple Maven reviews what could have caused AAPL to spin its wheels this Tuesday. Meanwhile, Apple stock has returned to correction territory – that is, a double-digit decline from the peak.
Apple news of the day
Apple-specific matters were not all that impacted AAPL stock performance. Below are the most likely catalysts that sunk Apple shares on May 4:
- The Apple vs. Epic Games battle over the former's App Store policies rages on. Only the first two days of the antitrust trial has been left behind, in what is expected to be a multi-week saga. While the outcome is yet to be known, uncertainty alone could be a bearish force dragging Apple stock.
- If the bench trial were not enough, a long-time Wall Street bull sounded a bit less excited about the App Store. Morgan Stanley's Katy Huberty saw "softer than expected" April App Store data, and lowered her fiscal third quarter App Store growth rate rather sharply, to 11% from 19% previously.
- Softness seems to have been widespread in the market, and not confined to Apple shares. Comments from Treasury Secretary and former Fed Chair Janet Yellen regarding the need for higher rates "to make sure our economy doesn't overheat" probably helped to put pressure on tech and growth stocks.
Key metrics on Apple stock
After an early April rally, Apple stock took a U-turn after fiscal second quarter earnings. Here is a refresher on some of Apple shares' key metrics:
- Flat for the year vs. the S&P 500's 12% and the Nasdaq's 7% gains.
- Down around 11% from the January peak of $143 per share.
- Worth about $2.1 trillion and, once again, at risk of dipping below the $2 trillion valuation milestone – a 6% decline from here would do the trick.