Why Apple Stock Is Down Today? Know 3 Reasons Why Apple Stock Is Going Down?

Q: 2. Where is the headquarters ofApple Inc.?

The headquarters of Apple Inc is inCupertino, California, United States.

Q: 3. Who were the founders ofApple Inc.?

Steve Jobs,Steve Wozniak andRonald Waynewere the founders of Apple Inc.

Why Apple Stock Is Down Today: Apple Inc. is an American technology company headquartered in Cupertino, California, United States. It is one of the largest technology companies by revenue, but still, the stocks of the company were down in recent days. Investors were asking Why Apple Stock Is Down Today and is it down right now. Through this article, let's look at why Apple Stock Is Down Today and Is Apple Down Right Now.

by C Hariharan | Updated Jan 05, 2023

Source: Pinterest

Apple Inc

Apple Inc. is a multinational technology company from America. It is headquartered in Cupertino, United States. Apple is the one of the largest technology companies by revenue. In June 2022, Apple Inc. was the world's biggest market capitalization company and the fourth-largest personal computer vendor by unit sales. It is the second-largest mobile phone manufacturer. Apple Inc is one of the Big Five American IT companies, besides Amazon, Alphabet, Meta, and Microsoft.

Why Apple Stock Is Down Today?

Apple (AAPL -3.74%) stock tumbled 4% through 2 p.m. ET on 3rd January 2023, banging the tech titan under $2 trillion in the market capitalization for the very first time since 2021, and propping the Apple stock a full one-third under the $3 trillion market cap it stuck a year ago. You may claim the investment bank BNP Paribas Exane for that -- but only in a portion.

Moreover, BNP downgraded Apple stock from outperform to neutral on the morning of 4th January 2023. It also ripped its cost target on the tech giant by 22% to only $140 a share. The detail is unavailable of how many total gadgets Apple produced in 2022. But, showing the supply chain problems in China, BNP stated Apple is about to ship not above 224 million iPhones in 2023, down 7% from 2021, as per the report from StreetInsider.

Apple Stock Today

On 4th January 2023, the day's Open was $126.89, while the Closing Price was $126.36. The Volume was 88.5M. As per investor.apple.com, Intraday High was 128.66, and Intraday Low was 125.08.

Day's Open	Closing Price	Volume	Intraday High	Intraday Low
$126.89	$126.36	88.5M	128.66	125.08

Why Apple Stock Is Going Down?

Apple Stock goes down due to several reasons. Here, let's look at why Apple Stock Is Going Down.

1) Business Outcomes

One of the common causes of the Apple stock decline is that its business is seeing a lot of challenges in 2023. It's clear that the covid has opened up a lot of demand for consumer electronics. In fiscal 2021, Apple's revenue rocketed 64.9% in contrast to fiscal 2020, when the net income rushed to 33.2%.

2) A Not-so-premium Valuation

Apple's valuation with respect to the remaining stock market is a point to consider. During mid-August, while the stock was down, it saw a price-to-earnings (P/E) ratio of 28.8. But the sell-off has pulled Apple's P/E down to a much more attractive 20.6. At the same time, the S&P 500 has a P/E of 19.7. The cyclicality of the business at a particular time predated the product and services portfolio, as we hear now. Apple stock exchanged at a below-market multiple with a P/E of below 15 for much of the first half of the 2010s.
Apple stock must trade at a market premium with its brand's features and the omnipresence of its phones. But provided its slowing growth and the probability in the coming quarters, it's understandable that investors may not wish to pay too much of a premium in the current market.

3) A Weakening Balance Sheet

The rising debt position of Apple has also accounted for the fact Apple Stock Is Going Down. Currently, its total net long-term debt is at an all-time high. It might be a shock to the investors taking into the view that the company has maintained gobs of cash on its balance sheet. In the last few years, Apple used its lush cash position to purchase back its stock at needed times and reinvest in the business. This time, it might be intimidated to utilize the free cash flow to pay down debt rather than purchasing back its stock.
Apple's debt position is on the way during a period of increasing interest rates and weakening consumer demand. There are better times for a business to accumulate debt on its balance sheet.

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Is Apple Down Right Now?

The short-term outlook is puzzled by the unreliability. But that may not deprive the core investment thesis of why the company is unsurpassed and has a broad development runway. In fiscal 2022, the act made up 19.8% of total revenue but promoted a 71.7% gross margin, equated to a 36.3% gross margin for products. The development of the services segment during the last few years portends well as a high-margin reappearing revenue stream. But that doesn't remove the fact that the gross margin and Volume of the company on its products are unparalleled in the consumer electronics industry.

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Why Apple Stock Is Down Today - FAQs

1. What is Apple Inc?

Apple Inc. is an American multinational technology company headquartered in Cupertino, California, United States.

2. Where is the headquarters of Apple Inc.?

The headquarters of Apple Inc is in Cupertino, California, United States.

3. Who were the founders of Apple Inc.?

Steve Jobs, Steve Wozniak and Ronald Wayne were the founders of Apple Inc.

4. How much Apple Does Bill Gates Own, as of 2022?

Microsoft converted all of its shares into common stock by 2001, giving the Gates-led company roughly 18.1 million shares of Apple. By 2003, Microsoft had sold its entire stake in Apple for $550 million.

5. Does Apple pay a dividend, as of 2022?

Apple's annual dividend in 2021 was $0.88 ($0.22 paid quarterly). Based on Apple's stock price as of March 1, 2022 of around $163 per share, the dividend yield is approximately 0.50%.