Apple's stock rout starts and ends with the iPhone

Apple's stock rout starts and ends with the iPhone


The stock, once a safe haven from market turmoil, is more than 20 percent below all-time highs and clinging to modest year-to-date gains. The stock has shed more than a $100 billion of its historic $1 trillion market valuation. It's on pace for its eighth straight week of declines and its worst month of trading since the 2008 financial crisis.

And it all starts with the iPhone.

 

On Nov. 1, alongside Apple's fiscal fourth-quarter earnings, the company reported lower-than-expected iPhone shipments for the fourth straight quarter and warned of lighter holiday sales than analysts expected. The company also announced it will stop reporting individual unit sales and revenue figures for the iPhone.

Shares plunged 6.6 percent during the next trading session.

Then came the supply-chain rumors and speculation that Apple was cutting component orders for its newest iPhones. The stock fell another 5 percent last week after at least four iPhone suppliers slashed revenue forecasts.

"This is as negative sentiment as I've seen from investors on Apple since maybe 2014, 2015," Dan Ives, managing director of equity research at Wedbush Securities, told CNBC in an interview. "Every bear is coming out of hibernation ... At this point the New York City taxi driver is negative on Apple." Read more




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