The Sky isn't Falling with Apple's Stock in the Midst of a Market Selloff Fed by China's Stock Market Troubles
The folk tale of Henny Penny, better known as Chicken Little, is playing out this morning over at the Los Angeles Times. Yes, the 'sky is falling' as Apple's stock "is plunging again – this time over fears about poor iPhone sales, not just in China but across the globe." The Times goes on to state that "Shares of the world's most valuable company have fallen nearly 15% over the last month, briefly trading Wednesday below $100 for the first time since October 2014, amid several reports that iPhone part makers and assemblers are bracing for a work slowdown."
Yet in perspective, the fall in price is in sync with global markets sliding because China was forced to close their market last night after only being open 30 minutes. Another source states that it was actually closed in 14 minutes due to a new circuit breaker. It's the second stock market closure in China this week. China fears that runaway automated computer trading triggers could possibly escalate selling and damage their market and so the selloff in China and around the world is likely to continue until the market finds a stable bottom. Until such time, Apple's stock price is likely to take it on the chin being that it's one of the largest tech stocks in the world. It's just standard market conditions and reactions that occur from time to time.
Although reports continue to pile in claiming that Apple's iPhone 6s sales are slowing, especially in Apple's supply chain in Taiwan, most should keep the slide in perspective until Apple reports their financials on January 26 and clarifies the true status of the sales of the iPhone 6s. At such time Apple's CEO Tim Cook and CFO Luca Maestri will provide us all with necessary details with their customary commentary and analysis.
Until such time, Apple is unable to comment on their situation by law and some in the media will overplay their hand during that time frame just for the sake of creating dramatic headlines to whip up frenzy.
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