Apple (NASDAQ:AAPL) stock has been freefalling since mid-February due to the growing coronavirus risk. The stock price is currently $ 252.86 or 27.30% down from the peak of $327.85 registered on January 29 this year and a 38% increase from the 52-week low – $ 175.35. The market value of Apple stock is around $1.106 trillion. Apple is one of the most valuable companies in the world. However, the company’s market value has declined significantly from last month. As of February 18, Apple’s market cap was nearly $1.4 trillion. The value has also declined since the beginning of the year due to fears about the coronavirus.
Store closures due to coronavirus
Due to growing fears among people in China, Apple closed about 42 of its stores in the country last month. However, the company opened 38 of the stores last week. Last week, it was decided to close all of the company’s stores in the US. Stores in Italy also remain closed until further notice, with similar developments expected in other countries.
Impact on Apple’s iPhone sales
The increasing number of coronavirus cases in China will likely hurt Apple’s iPhone sales. Imposing travel bans and restrictions on public places in China impacted iPhone sales in February. According to a Reuters report compiled by the China Academy of Information and Communications Technology, iPhone sales fell to fewer than 500,000 in China in February 2020.
Amid the coronavirus outbreak, Apple warned its investors last month that it might not meet its revenue guidance for the upcoming March-ending quarter. The company blamed the coronavirus for disrupting its iPhone supply and overall sales. In a news release, Apple said that its manufacturing partners in China would resume production at a slower-than-anticipated rate.
From technical point of view, weekly chart shows a major support level around $228-235. Break below and price will target $190.
Daily chart suggests interest in buying around $232-239. Rebound on this daily block, price should target the 382-500 FIBS around $268-280.
Trader Georgi Bozhidarov