15 May

Why Apple Stock Fell 7% Last Week

WRITTEN BY Sanmit Amin

Apple stock fell after renewed trade tension between US and China

Apple (AAPL) stock has had a fantastic year with returns of over 35.5% until last week, when worries of the trade war came back to haunt the stock. Apple fell nearly 7% in the week ended May 10. President Trump increased tariffs on Chinese imports on Friday. While these tariffs didn’t hit any of Apple’s products directly, there is a chance the Trump administration could levy a tariff of 25% on $325 billion worth of Chinese imports that have not been on the radar yet.

Why Apple Stock Fell 7% Last Week

Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Apple’s revenue from the region has already been tanking

Apple’s revenue from the Greater China region has tanked in the previous two quarters, but the region still makes up around a sixth of the company’s total revenue.

Thus, if China strikes back, Apple’s products, which have been struggling in China, could have a steeper mountain to climb in the country where its iPhone already faces stiff competition from local rivals.

According to a note to investors by UBS, the iPhone’s performance in China improved drastically last month. Apple had slashed the prices on iPhones earlier this year in China to stimulate sales in the country.

However, the investment bank warned that the trade tensions between the two countries might dampen consumer confidence in China.

Latest articles

Tesla (TSLA) stock short sellers seem to be getting exasperated. Notably, Tesla stock has been the short sellers’ favorite.

In the week that ended on November 15, natural gas prices fell 3.5% and settled at 2.688 per MMBtu (million British thermal units).

The Dow Jones Index (DIA) and S&P 500 (SPY) are trading at record highs and on Friday the Dow Jones crossed the 28,000 level for the first time.

Goldman Sachs (GS) settled a lawsuit that alleged it rigged bond prices. Also, Deutsche Bank agreed to pay a fine of $15 million to settle a lawsuit.

In the November 15 premarket trading session, Amarin Corporation (AMRN) stock rose more than 7%, caused by the FDA positive decision for Vascepa.

In the November 14 trading session, Aurora Cannabis (ACB) stock fell 12.7% from the previous session during after-hours trading.