The Nasdaq exchange continued to drop as gadget giant Apple’s stock dropped for a fifth straight session on Monday. Just last week Apple hit a market cap of $600 Billion dollars making it the world’s most valuable company.
Since rocketing to the top of the charts over the last few years, Apple has garnered some concerns from the market recently. Last week BTIG downgraded Apple over concerns over new iPhone pricing and the ability of ts loyal customers to upgrade.
Another negative was the Department of Justice suit last week against Apple and five publishers, saying they colluded on ebook pricing. Three of the publishers have settled.
A trader on the floor said to CNBC,
“If that were to balloon in an activist type of government, you’d have an overhang on the stock. I would say if this stock can’t close up above $595 today, you have a case for further downside. If not you have people who missed it when it broke up in the middle of March who might be buyers or covering their shorts. If they blow out earnings, what’s the upside? Is it going to $700 or is it going to $650? That’s going to be the question people have to ask.. Is it already in the numbers?”
Many analysts have been predicting that Apple had no where to go but up and predicted that they were headed for more new records.
With Apple stock up almost 45 percent since the beginning of the year, Apple’s drop today “…could be a simple “collapsing” on its own weight given the year-to-date move,” Brian Marshall, an analyst for ISI Group, wrote.
Apple shares hit a record of $644 on April 10, with a market cap of $600.4 billion. The stock hit an intraday low Monday of $582.30, bringing the market cap down to $542.9 billion.