On May 23 at 12:46 PM EDT, Apple (AAPL) was trading at $179.12 with a 2.0% loss for the day. Earlier today, it posted a low of near $177.87, down nearly 2.7% from yesterday’s closing price.
Of the last six sessions, Apple stock has fallen in five. On May 22, it fell 2.1% amid the broader market sell-off. Let’s find out what could be driving the stock down today.
Key negative factors
Today before the market opened, UBS lowered its target price on Apple stock to $225 from $235 for the next 12 months, according to a CNBC report. The new target reflected 23.1% upside potential from yesterday’s closing price of $182.78. The investment bank maintains its “buy” rating on the company.
UBS analyst Timothy Arcuri cited “soft smartphone market and ongoing US/China trade issues” for the cut in UBS’s target price on the iPhone maker.
ETFs with large exposure to Apple
On May 23 at 1:11 PM EDT, the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust, Series 1 ETF (QQQ) were trading with 1.6% and 2.0% losses for the day, respectively. Both SPY and QQQ invest a large portion of their portfolios in tech companies.
Today’s sharp losses in tech companies, including Apple, Microsoft (MSFT), Amazon (AMZN), and Facebook (FB), could be the key reason for SPY’s and QQQ’s losses. These four stocks make up the top four holdings of both SPY and QQQ.
The shares of Microsoft, Amazon, and Facebook had fallen 2.0%, 2.8%, and 2.5%, respectively, as of this afternoon.