Apple’s Share Plunge Has Entered Record-Setting Territory
Apple CEO Tim Cook may not have said anything new on his CNBC appearance Monday, but investors could still have reason to believe that the a share price rebound is coming soon.
Apple’s stock had already tumbled for four straight sessions when the company announced its first-ever drop in iPhone sales on April 26. Since then, the stock has dropped four more consecutive days, marking the first eight-day slump since July 1998 and only the fourth eight-day slump in the company’s history, Bloomberg reports. A total of $79 billion in market cap was wiped out over the run.
But not all the news is bad. In its “Chart of the Day,” the Bespoke Investment Group, a financial research and money management firm in Harrison, N.Y. notes that the previous dives have been followed by a big stock price run-up.
“[T]wo of the three 8-day streaks saw the stock fall on day 9 as well, but the stock has never experienced a losing streak longer than 9 trading days,” the firm writes. “While the next day and next week returns following 8-day losing streaks lean negative, the stock has been higher over the next month all three times for a median gain of 8.01%.”
As Bespoke notes, “Apple bulls would certainly love a bounce like that over the next month.”