Apple stock this year
Apple (AAPL) started the year on a negative note, with its stock tumbling ~10% on January 3 after the company cut its first-quarter guidance. The stock then recovered to end January with a 5.5% gain, thanks to investors’ high expectations for its service segment growth. In February, March, and April, the stock rose 4.0%, 9.7%, and 5.6%, respectively, despite worries about deteriorating iPhone sales. However, May has turned out to be Apple’s worst month this. Let’s take a closer look.
Performance in May
As of yesterday’s closing, Apple had lost ~11.6% this month, underperforming broader markets by a wide margin. This year, the S&P 500, NASDAQ Composite and the Dow Jones Industrial Average have fallen 5.5%, 6.8%, and 5.5%, respectively.
Chip companies have suffered the most among tech stocks in May. This month, Qualcomm (QCOM), Intel (INTC), and Micron (MU) have fallen 23.7%, 13.3%, and 20.9%, respectively. The ongoing US-China trade tensions are taking a toll on tech companies, especially those with significant exposure to the Chinese market such as Apple.
Tech-heavy ETF QQQ is suffering
The Invesco QQQ Trust ETF (QQQ), which invests ~9.8% of its total portfolio in Apple, has fallen 7.1% this month. Apart from Apple, the ETF has a large exposure to Microsoft (MSFT), Amazon (AMZN), Facebook (FB), and Alphabet (GOOG), which have also had a weak month. Unless Apple stock recovers sharply soon, May could be Apple’s worst month this year.