Tech giant Apple Inc. took just 12 trading sessions to plunge more than 20% from its all-time high, shedding over half a trillion in market capitalization.
Apple (AAPL) has plunged 22.6% from its intraday record high of $137.98 from Sept. 2, losing around $532 billion in market value, CNBC reported. On Friday, Apple shares fell 3.2% to close at $106.84.
“Apple’s fast and furious decline followed its massive run-up in August ahead of its 4-for-1 stock split, while the steep losses also came as Apple’s recent product event — its first in 2020 — didn’t live up to the hype,” CNBC explained.
Earlier this week, Apple rolled out a new virtual fitness service and a bundle of all its subscriptions, Apple One, focusing a holiday-season product launch on services that are the backbone of Apple's growth strategy and that cater to customers working at home during the COVID-19 pandemic.
Apple also introduced a new Apple Watch Series 6 that monitors blood oxygen and will cost $399 and a more basic Apple Watch SE for $279.
But the bevy of incremental updates to existing hardware and subscription price tinkering disappointed investors, Reuters explained.
Tony Sacconaghi, senior research analyst at Bernstein, called the event relatively underwhelming.
“We believe it could be difficult to move users from competitive music, video or gaming services, where they are often entrenched,” Sacconaghi said in a note. “We continue to believe that Apple should look to more creatively bundle its hardware + services into integrated subscription bundles.”