The market value of apple and the NASDAQ fell by more than $200 billion this week. Technically, apple and other technology giants have officially entered a bear market. Apple's sharp fall occurred in a week when the US stock market was bloodwashed: affected by multiple factors such as the Fed's interest rate hike, weak consumer confidence, high US inflation and challenges facing the global supply chain, almost all sectors of the US stock market were sold off.
The Nasdaq composite index has fallen by more than 7% this week, and it is about to fall for six consecutive weeks.
Apple faces some supply chain challenges, but its business outlook has not changed significantly this week.
The company is often seen by investors as a "safe" haven. Therefore, when apple is sold off together with all stocks, it will be further bad for other stocks, because it shows that investor sentiment is deteriorating.
Jeff degraff of Renaissance macro research said on Thursday that there is no safe haven in a bear market - and apple is no exception.
Nick colas, co-founder of datatrek, a research firm, said: "we think Apple's sell-off will continue, not because of our concern about [iPhone] this quarter( https://apple.pvxt.net/c/1251234/435400/7639?u=https%3A%2F%2Fwww.apple.com%2Fcn%2Fiphone%2F ) What's the news about shipments or service revenue, but because we believe that once investors start selling the best stocks, it usually doesn't end in a day. " He said.
This is the opposite of the trend in November last year, when growth technology stocks began to fall, and apple can often attract investors looking for low-risk targets in the technology industry.
Apple still has a lot of cash flow, so it can fight the slowdown in growth and return profits to shareholders. The company's operating cash flow in March quarter was $28 billion, with total sales of $97.3 billion. The company spent $27 billion on share repurchases and dividends in the quarter.
Despite the weak confidence of American consumers, it has not yet had an impact on iPhone sales - in fact, except iPad In addition to being impacted by the shortage of chips, all businesses of apple have achieved growth.
When asked about the impact of the macroeconomic environment and inflation on the conference call last quarter, Apple CEO Tim Cook said that the more important issue for the company was how to produce enough iPhones and Macs to meet global needs, rather than slowing demand growth.
"To be honest, our main focus is on the supply side." Cook said.
To say the least, even apple is beginning to feel the impact of the deterioration of the macroeconomic environment. It still has global well-known brands, excess profit margins, stores in major shopping malls and a series of related products and services that attract rich consumers around the world.
In addition, if growth does slow, apple can still reap huge profits and revenue - even if it is no longer the world's most valuable company.