This morning, the Apple stock (AAPL) opened at $94.87 a share, and dropped to $92 a share, one of the lowest points the stock has reached since earlier this year when it was going for $134.50 a share. However, Apple is not the only company to have been significantly impacted by the unfortunate stock market crash following the woes of China’s market plummet. In fact, Garrett Baldwin of the Economist explains the following on Money Morning.
“Futures for the Dow Jones Industrial Average today (Monday) forecast a 616-point decline, nearly 4% as traders continue to sell off over fears related to the Chinese economy.”
The Chinese Shanghai Index fell more than 8 percent, causing drops in shares for Apple, Google, Yahoo, Facebook, Microsoft, and the NASDAQ. There is no doubt that panic among market-watchers, and investors in Apple stock, is at an all-time high, and many experts are saying to expect another wave of “heavy selling pressure.” Jeffrey Gundlach, the co-founder of DoubleLine Capital, an income investment management firm, expresses that there will still be a high degree of uncertainty before any sign of market correction occurs for the Apple stock, and in general.
Despite the dip, however, since this morning Apple’s stock has already seen a small increase, reaching a high of $108.80 per share, perhaps because of an email sent by Tim Cook to CNBC‘s Jim Cramer, in which he claimed the following.
“… iPhone activations have accelerated over the last few weeks, despite growing economic concerns in China and the government’s moves to devalue the Yuan. He also said Apple’s App Store recorded the best performance of the year in China during that time.”
The supposed email was tweeted earlier this morning, contributing to the considerable surge in shares. However, some lawyers are saying that the email may have “violated federal disclosure rules.”
— Carl Quintanilla (@carlquintanilla) August 24, 2015
It is unlikely that the increase will remain steady, since Apple has increased its dependence on China substantially in the past few years, and much of their revenue growth is accounted for by the Chinese market. If the Chinese Index continues to drop, the Apple stock may experience a considerable decline in share price as Chinese consumers become less fixated on acquiring reputable brand products, and more motivated by practicality and cautious expenditures.
Currently, the Apple stock continues to fluctuate bit by bit, and although the dip wiped more than $75 billion in Apple’s overall stock market value, Tim Cook seems to have momentarily delayed any further plunges in Apple’s stock — for now.
[Image by ChinaFotoPress / Getty Images]