Technology stocks in the US are on the plunge since Friday last week. Among the companies that have been affected most is Apple whose shares fell by 4 percent today. This happens to be the second day running as Apple had recorded a stock fall of 3 percent on Friday. This means that the technology giant has recorded a 7 percent decline in the last two business days. However, experts say that the Monday decline was as a result of the action carried out by Mizuho. Mizuho decided to downgrade their stocks to neutral which resulted in Apple’s shares dropping from $160 to $150. However, the managing director of Mizuho said that they believed that things are about to change and the stocks will pick in the coming days.
On Friday morning at around 10: 40 am, Apple stocks had dropped by 2.9 percent and they were worth $144.65. Correctively, the stocks fell by a margin of 2.9 percent on Friday. Apple stocks finished the day on Thursday at a high of $154.99. However, experts say that Apple gains in the coming weeks will be limited by the expectation that iPhone 8 will be bought by many customers across the globe. Since consumers are expecting the release of iPhone 8, they will not buy any iPhone in the coming months until the new model is released. Customers are also hopeful that the new iPhone will incorporate the new OLED display technology. However, customers do not expect to incur any extra cost on this feature.
Experts also say that Apple expansion in China will remain weak. At the same time, sales in India are expected to remain low as many people in the country cannot afford Apple devices. However, the company will experience growth in revenue in the coming two years. At the moment, Apple is estimated to have overseas cash holdings of $170 billion. The hard economic times facing the company is a sign that the market is currently characterized by volatility.