Apple Leads Tech Sector's Massive $900 Billion Market Loss

[MacRumors]

Apple's stock price today dropped amid a broader roader technology sector sell-off that has wiped out nearly $900 billion in market value (via Reuters).

Apple's stock fell by over 4%, largely influenced by Berkshire Hathaway's announcement that it has almost halved its stake in the company from 5.6% to approximately 2.8%, alongside escalating fears of a recession in the United States. The decision by Warren Buffett's conglomerate came as a surprise to many, given Buffett's long-standing endorsement of the company. The move was part of a broader strategy by Berkshire to raise its cash position to a record $277 billion, indicating a cautious approach towards the current economic environment and concern about the technology sector's resilience.

The "Magnificent Seven" technology companies in the United States (Apple, Nvidia, Amazon, Alphabet, Meta Platforms, Microsoft, and Tesla) today collectively lost nearly $900 billion in market value due primarily due to concern about their volatility. Nvidia experienced a sharp decline of over 8% following reports of delays for its next-generation AI chips. Amazon and Microsoft also saw their shares tumble by 8.3% and 5%, respectively, amid growing concerns about the reliability and profitability of their cloud computing services.

However, some analysts still see cause for optimism about Apple's position in the market. In its most recent earnings report, Apple detailed a steep increase in services revenue at $24.2 billion, up from $21.2 billion a year ago. The introduction of Apple Intelligence later this year is also expected to support growth.

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Article Link: Apple Leads Tech Sector's Massive $900 Billion Market Loss

 

[nt5672]

Yep, that hurts. If we can make the correct political decisions in November, it will be temporary.

 

[dallas112678]

Got to love the stock market. Worried about a potential recession in the future, sells everything, ends up causing the actual recession…

 

[boak]

Time to buy lol

 

[ignatius345]

As always, zoom out your charts. Unless you're seriously trading day to day, it's way more important to look at a longer time frame. Here's the recent action in context.


edit: this isn't to say AAPL and others could fall a lot further -- this may well come to pass! But what looks like a full-blown disaster on a 1-day to 1-year chart may look a lot less disastrous when viewed out on the decade-scale timeline you expect to be holding the asset. If you have something in your retirement portfolio, for instance, you will probably regain a bit of calm by squinting your eyes and looking at the general shape of the chart over a decade.

 

[BuffyzDead]

Y A W N 🥱🥱🥱

As an owner, of a 5 didgit number in Quantity, of Apple Stock.
Wake me up several months after the election,...sometime in the Spring of 2025 might be worth a peek.

 

[yeah]

As excepted. We’ve been in overbought territory for almost a year now with euphoria over AI.

There have been weeks where the S&P 500 NVDA pumped non-stop on bad news and little volume.

 

[coffeemilktea]

The decision by Warren Buffett's conglomerate came as a surprise to many, given Buffett's long-standing endorsement of the company.

He sold when the price was high, and he's going to buy back in at a discount after this fire sale is over. The man has a predictable yet extremely effective strategy. 🤑

 

[Isengardtom]

Let’s hope it wiped out some of their arrogance and complacency as well, but I doubt it

 

[Realityck]

We shall see how much of the marketplace claws its way back after this premarket sell off.

From CNN

Fears of a sharp slowdown in the US economy have raised expectations that the Federal Reserve will have to slash interest rates. Coming as the Bank of Japan takes its interest rates higher to contain inflation, that is boosting the value of the yen against the US dollar and making Japanese export-dependent stocks less attractive.

At the same time, tech stocks are being hammered by a combination of mixed earnings and increasing skepticism among some investors about the hype around artificial intelligence.

“The buzz is all about the contagion effect of this aggressive bear onslaught, underscored by fears of a hard landing in the US and a severe meltdown in Tokyo’s markets, which now appear to be self-perpetuating,” said Stephen Innes, managing partner of SPI Asset Management.

Trading was halted for short periods of time in Japan and South Korea as circuit breakers designed to prevent panic selling were triggered multiple times.

From 3 days ago

Has the AI bubble burst? Wall Street wonders if artificial intelligence will ever make money | CNN Business

There’s been one big question on the minds of Wall Streeters this tech earnings season: When will anyone start making actual money from artificial intelligence?

www.cnn.com

There’s been one big question on the minds of Wall Streeters this tech earnings season: When will anyone start making actual money from artificial intelligence?

In the 18 months since ChatGPT kicked off an AI arms race, tech giants have promised that the technology is poised to revolutionize every industry and used it as justification for spending tens of billions of dollars on data centers and semiconductors needed to run large AI models. Compared to that vision, the products they’ve rolled out so far feel somewhat trivial — chatbots with no clear path to monetization, cost saving measures like AI coding and customer service, and AI-enabled search that sometimes makes things up.

 

[roar08]

Market goes up, market goes down. Rinse and repeat, ad infinitum.

 

[ppetrovic]

Just another market correction. This, too, shall pass. Don't panic sell your hard-earned AAPL!

 

[now i see it]

A spiky stock market (up & down) is how the traders make money at the little guy’s expense

 

[dannyyankou]

The market is already recovering from today's lows. Today will probably still end in the negative, but the NASDAQ is already 4% above where it opened this morning.

 

[Macalway]

Actually, Buffet's move is strange. Not exactly a vote of confidence. It makes you wonder why? Shuffling is one thing, this is not a minor shuffle though.

 

[JordanCautious]

Just a reminder that the Top 10% own over 90% of the Stock Market.

A lot of Stocks were inflated regardless. Some of these valuations are laughable so seeing it finally burst is actually refreshing. Though, I have a Finance degree so I'm obviously a bit biased lol

 

[Macalway]

Everyone saying this is a good thing, and a healthy market correction, bodes badly.

THere's no worry there.

 

[jz0309]

Things that go up must come down, happens with the stock market on a regular basis… we’ll have to see what the “AI” bubble is going to do…

 

[Unity451]

Who you vote for (or don't) has consequences. Make sure you show up in November.

 

[CalMin]

Here's my armchair analyst assessment...

There's this sense that AI will revolutionize tech in the same way that the advent of the PC, Web, Web 2.0 etc. did, and I think markets and valuations have been pricing this in as revolutionary, but this is premature. AI will have an effect, but anyone who has used Microsoft CoPilot will understand how disappointing it is in current form. It can be magical, but it's more miss than hit in current form.

I see AI as an accelerant in the near term (e.g. I use ChatGPT, ClaudeAI daily) but I use it as an assistant than anything else. While remarkable, it's not quite there in terms of being able to replace jobs yet in my field. Some of this correction has to be due to the fact that it is going to be an incremental value driver, and not a revolutionary one.

 

[Jimmy Bubbles]

Time to buy lol

Not quite. Not till there’s blood in the streets, according to Rothschild.

 

[FineWoven]

I'm honestly surprised it's taken this long in the US for things to get dicey given the Democrats' lust for spending over the last few years and the Fed seemingly so unsure of itself when it comes to what they should do with interest rates.

EDIT: I never knew how many leftists were ironically also such diehard fans of a 3 trillion-dollar company. That is certainly an interesting overlap but I guess anyone can make anything make sense if they try hard enough to rationalize it to themselves.

 

[klasma]

A spiky stock market (up & down) is how the traders make money at the little guy’s expense

As a little guy, I just bought some stock at 5% less cost than last week.

 

[VisceralRealist]

Got to love the stock market. Worried about a potential recession in the future, sells everything, ends up causing the actual recession…

The stock market runs on self-fulfilling prophecies.

 

[surfzen21]

Actually, Buffet's move is strange. Not exactly a vote of confidence. It makes you wonder why? Shuffling is one thing, this is not a minor shuffle though.

Buffet's move is not strange if you understand his investment philosophy and its trajectory. Right before he starting selling off, 43% of his portfolio was in AAPL. That became too big of a position for him. He also didnt time the selling right, not that anyone can always do that. However he did miss a lot of upside.

It's also important to note that when he was selling, the institutional investors were gobbling up AAPL. This is an important metric as well.

For the record I own both BRK-B and AAPL and have continued confidence in both.