CNBC is trashing mega cap tech like no tomorrow, with the VAST majority of commentators thinking all of them have further downside to go.
A common theme is that they all soaked up increased demand during Covid and low interest rates, so the stock price increase from March 2020 through Mid 2021 needs to be reset.
Let’s see a list –
AMZN Pre-Covid High: $106
AMZN March 2020 Low: $89
AMZN 2021 High: $185
Today: $90
Pre Covid High to 2021 High: 75% Gain
2021 High to Today: -51% Loss
MSFT Pre-Covid High: $185
MSFT March 2020 Low: $137
MSFT 2021 High: $343
Today: $246
Pre Covid High to 2021 High: 85% Gain
2021 High to Today: -28% Loss
GOOGL Pre-Covid High: $75
GOOGL March 2020 Low: $53
GOOGL 2021 High: $149
Today: $94
Pre Covid High to 2021 High: 99% Gain
2021 High to Today: -37% Loss
Now let’s look at Apple
AAPL Pre-Covid High: $81
AAPL March 2020 Low: $57
AAPL 2021 High: $179
Today: $143
Pre Covid High to 2021 High: 120% Gain
2021 High to Today: -20% Loss
I get it, apples the most “resistant and stable” company out there. But I remember a time in either 2018 or 2019 when the company was doing horrendously and the market lost all confidence in the company over a simple down cycle. It can definitely happen again.
Not only may optimism flip on a dime after a single negative quarter; APPLE stock ran the MOST out of all big tech and has fallen the LEAST in 2022.
tldr; Apple isn’t immune to severe downside
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