Apple (NASDAQ: AAPL) opened to a bleak future perspective at the start of this week’s trading session as its stock price extended losses over the closed session last weekend, which was triggered by the continuing coronavirus outbreak.
In the ever-growing uncertainty that has been plaguing the global financial markets for weeks now, Apple opened to a huge difference from where it left off before the weekend.
Apple’s Trillion-Dollar Valuation Under Threat
Apple closed Friday’s trading session at $277.97, which was roughly a 12% gain from Thursday’s session. By Monday, however, the price had completely lost every gain of the previous session, trading down by 12.86%. This huge decline brought the company’s market cap to $1.06 trillion.
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This drop was chiefly prompted by continuing coronavirus effects, which has caused the company to cancel several events; Apple closed almost every one of its outlets outside China and has stifled production in its factories across the globe. The pandemic has also caused the company to delay the production of its Apple TV shows.
The valuation of Apple is now being tested as a continuation of the coronavirus spread could send this stock price to $232.56, which is where Apple’s trillion-dollar-mark valuation lies. A subsequent decline from that price would mean Apple will no longer be a trillion-dollar company for the time being.
A $1.2-billion-dollar Problem from France
The fall in price was also aided by a new $1.2 billion fine imposed on Apple by French authorities.
The tech giant was fined this hefty amount by the French Competition Authority, who accused the company of “cartelizing” its distribution network.
It is believed that Apple enacted a zero-competition agreement with two of its main distributors. The two distributors are also believed to have fixed prices to the disadvantage of the general market. It is believed that this is the heftiest fine imposed by the French authority.
At press time, the AAPL is trading at $252.86 and has pared back 4.4% of the loss witnessed on Monday. Overall, the stock is trading on a low of 22.80% from an all-time high of $327.85.
It is expected that the $240 mark, which has been tested on different occasions, will serve as a “floor” against further declines for the AAPL. However, with the uncertainty in the market, nothing is guaranteed.