A truly incredible company that has held the mantle of the world’s most valuable company by market capitalization for most of the past decade, Apple Inc. (NASDAQ:AAPL) has driven stock market indices higher as it continued to hit new highs, growing in economic importance to the overall economy, as well as pretty much any investor that owns an Exchange Traded Fund (ETF) due to the fact Apple now makes up a sizable chunk of most ETFs.
The recent stock market selloff has shaved roughly one-third off the company’s stock price in a very short amount of time. Many Wall Street analysts generally believe that while a significant portion of this selling is due to coronavirus-linked supply chain concerns for Apple’s core products, the reality remains that margin calls, ETF-selling, and other factors have also contributed to the marked selloff in Apple stock of late.
As we continue on in full panic mode, I expect to see continued selling as downward pressure builds as coronavirus concerns continue to be priced into the broader stock market. Due to Apple’s relative position in the market, I’d expect to see this pressure continue over the medium term. That said, as the outbreak curves begin to flatten around the globe, I also expect to see a full re-valuation of Apple’s earnings and growth potential, with consumers unlikely to stop spending as governments continue to print money and put this cash in the hands of consumers in an effort to drive economic growth.
Invest wisely, my friends.
