Apple stock showed signs of life, when it climbed 2% in the first few moments of trading, on May 5. But it could not quite make up for Tuesday's sharp decline in the end.
Shares of the Cupertino company U-turned and finished Wednesday's session up only 0.1%, still 10% below all-time highs. The Apple Maven looks at the puts and takes that contributed to the stock barely slowing down its surprising post-earnings week descent.
Apple news of the day
Not many company-specific news seem to have driven Apple share price on Wednesday. Below are the most likely forces behind the stock's performance:
- Apple shares re-entered correction territory on May 4, after a month closer to the peak. When materially off their highs, stocks generally behave erratically. Positive and negative days alternate as bulls and bears take turns driving share price movements. This seems to be happening with Apple lately.
- Helping the stock was a moderate decrease in interest rates. After Treasury Secretary Janet Yellen spoke (maybe out of turn) about the need for yields to rise to cool down economic activity, she eased concerns by ensuring the independence of the Federal Reserve. The bond market appreciated the move.
- Possibly still hurting the stock is the lingering battle between Apple and Epic Games. It is unclear how much the legal fight has been impacting the Cupertino company's stock price. But until resolution, bearishness could come from uncertainty related to the App Store.
Key metrics on Apple stock
Apple stock enjoyed a pleasant early April rally, but shares have been on shaky ground recently. Here is a quick look at some of Apple's important stock-related metrics:
- Flat for the year vs. the S&P 500's 12% and the Nasdaq's 7% gains.
- Down around 10% from the January peak of $143 per share.
- Worth about $2.1 trillion, and still holding the title of only US-based company to have ever been valued above $2 trillion.