Although the Apple stock had been considered to be one of the safest places for money in the first half of 2018, with investors like Warren Buffett currently holding a staggering 250 million shares, according to the last filing with the Securities and Exchange Commission.
The situation took a downturn starting from October 1st when the stock started to head south, a move fueled by a decision from Apple, announcing that the company will no longer provide detailed information on iPhone shares.
Warren Buffett lost nearly $4 billion in a single day on November 2nd, when the stock took a serious downturn.
Weakness in sales growth?
The move taken by Apple had raised concerns over the future iPhone sales, the product which is still the main revenue engine. With more than $2 billion devices in circulation, the market is already overly saturated and investors doubt the company will manage to sell more and more smartphones, especially now that prices had gone up substantially.
Alt text: AAPL stock performance
Chinese court bans older iPhone sales
A few days ago, the AAPL stock was hit again by a news from China, where a court had banned the selling of iPhone 6s, iPhone 7, and iPhone X after Qualcomm complained about two copyright infringements.
Despite the court decision, an official Apple statement said that the phones are still available for sale in mainland China and also, the company will file an appeal to overturn the decision, as alphr.com had recently written.
The stock still under selling pressure
The AAPL stock started the year at $170 and ended last day at $163.94, dampening the prospects for growth for the next few quarters. It will be tough to make a trading decision right now, so traders should carefully analyze the fundamentals and market outlooks, like the FINQ market outlook in order to be up-to-date with all the latest developments.
Taking into consideration the strength of the downward move, it’s hard to find any major support until the $145-$140 area, where the 200 weekly moving average is also located.
We must also consider that the US market expanded for more than 9 years and the risk for a recession in the next two years continue to increase. This is likely to have a negative effect on the stock market, and the AAPL stock is not expected to be among the exceptions.