AAPL After Hours: Apple Stock Re-Enters Correction

On Monday, May 10, Apple stock moved further from its all-time high, digging into correction territory. Here is what put pressure on shares this time.
Author:
Publish date:

The Apple stock ($AAPL) tango continues. Shares of the Cupertino company remain stuck in a "one step back, another to the side" routine, and have not found their way higher since fiscal second quarter earnings, released in April.

On Monday, May 10, Apple lost 2.5% of its value. This was Apple's first down day in the past four trading sessions (not bad), but also its sixth in the past ten (definitely not great). Shares are now worth less than $127, matching late December 2020 levels.

Below are the main reasons why Apple stock dug one layer deeper into correction territory. 

AAPL stock price action on May 10 at the close

AAPL stock price action on May 10 at the close

Also read: 3 Reasons To Confidently Buy AAPL Stock

Apple news of the day

The key events moving Apple stock this Monday were likely broad-based, not company-specific. Here is a short list of them.  

  • TheStreet reported that a surge in crude oil prices reignited inflation concerns, sending yields higher and causing TIPS (inflation-linked treasuries) to outperform nominal bonds. This sort of movement tends to be a bearish cocktail for growth tech names, like Apple.
  • Wall Street did not help much, when Goldman Sachs issued a highly-skeptical report on FAAMG stocks. According to the bank, there are at least a handful of reasons why Big Tech shares could underperform, ranging from (1) antitrust intervention to (2) an increase in corporate and capital gains taxes and (3) rising interest rates.
  • It is possible that the labor market debacle might have impacted the general mood in the market. After Friday's US jobs report failed to impress, President Joe Biden sounded less generous than usual about government support for unemployment benefits. Doubts over fiscal stimulus could be bearish for stocks.

Also read: What ARK Invest CEO Cathie Wood Thinks Of Apple Stock

Key metrics on Apple stock

Apple stock has, at times, shown signs that it can recover from late April-to-early May bearishness. But any rebound, so far, has proven to be short-lived. Here is a summary of a few important Apple stock-related metrics:

  • Down 4% for the year vs. the S&P 500's 13% and the Nasdaq's 4% gains.
  • Down 11% from the January peak of $143 per share. This is the farthest that Apple stock has been to all-time highs since early April.
  • Worth about $2.1 trillion, and still holding the title of only US-based company to have ever been valued above $2 trillion.

Also read: Why Jobs Report Miss Is Good News For Apple Stock