Apple stock enters correction territory with valuation set to fall below $ 2 trillion

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Apple Inc. shares continued their steep decline in trading on Friday and entered corrective territory.
Le stock AAPL,
-2,45%
fell 4.7% as of noon Friday and is down about 14% from its all-time September 1 close of $ 134.18. A correction is defined as a drop of between 10% and 20% from a recent high, and Apple shares are expected to close at $ 107.34 or less to enter bear market territory, defined as a fall of at minus 20%.
Read: Tech bloodbath aside, ride these two giants for the second half of the recovery, senior analyst says

The recent drop in Apple stocks has pushed the smartphone giant below the market cap of $ 2 trillion. The company is now on track to close with a valuation of $ 1.97 trillion based on intraday trading. Apple became the first U.S. company to close with a market value above $ 2 trillion on August 20, and its market value peaked at $ 2.29 trillion based on the September 1 closing high.

The iPhone maker split four-for-one of its stock after last Friday’s close in an effort to make stocks more widely available and bring its share price back, which was hovering around $ 500. before the split, more in line with what is generally observed. for other members of the price-weighted Dow Jones Industrial Average,
-1,27%,
of which Apple is a component.
Apple stocks have been punished in the past two days as part of a larger rout in tech stocks that had seen big increases in recent months. The highly technological Nasdaq Composite Index COMP,
-2,67%
fell 460 points, or 4%, in Friday’s session after falling 598 points, or 5%, in Thursday’s trading.
Wedbush analyst Daniel Ives wrote Thursday night that “the massive sell-off will cause white punches on the streets as fears of a tech bubble and stretched valuations become the talk of the city.” although he sees more room to run for names in tech and has called on Apple especially as a company that could benefit from an economic rebound.
Hopes for the rebound were boosted on Friday, following the government’s August jobs report, which showed unemployment fell for a fourth consecutive month. Learn more about the Jobs report.
Apple “remains our primary name in 5G and consumer tech recovery as the lockdown eases and consumer spending appears to increase” in the second half of the year, Ives wrote.
Stock has added 42% in past three months as the Dow Jones Industrial Average is up 5.8%

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