Apple's stock price came under pressure, wiping out more than $200 billion in market value in six trading days.
Overnight on March 6, Apple's stock price closed down 059%, marking the sixth consecutive trading day of the stock's ** trend. The cumulative range of ** in the past six days has reached 72%, causing Apple's market value to evaporate by more than $200 billion. Since the beginning of this year, Apple's stock price has been **12%, while the Nasdaq 100 index has **742%。
Some analysts pointed out that Apple's stock price was affected by multiple factors, mainly including market concerns about China's iPhone sales and the European Union's fine on Apple.
Michael Toomey, an analyst at investment bank Jefferies, said:
"The market may have overreacted to the negative sentiment towards Apple, causing the share price to be oversold. ”Tomey assesses the oversold condition of Apple** by analyzing the Relative Strength Index (RSI) of Apple's long positions and shorting the Nasdaq 100 ETF QQQQ. The results show that Apple's RSI indicator relative to QQQ shows that Apple** is in the most severely oversold state since the beginning of 2018.
In addition, Bespoke Investment Group LLC pointed out in an article published on the X platform that Apple's stock price is currently more than three standard deviations below its 50-day**, and that Apple** is extremely oversold since the pandemic on March 16, 2020.
Despite Apple's recent poor performance and frequent negative news, Toomey believes that there may be an opportunity for Apple given the current oversold state of the stock price. However, Toomey also cautions that investors should be cautious when considering Apple, as its valuation is not cheap. Apple's current price-to-earnings (TTM) ratio is around 25 times, which is higher than the average of 19 times over the past decade.
The performance of the options market shows that traders remain optimistic about Apple's overall outlook and are not very concerned about Apple's stock price**. Specifically, implied volatility on three-month options has recovered from recent lows, but remains in the middle of the past year's range. Put skewness held near two-year lows.
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