Home Latest Why Apple Stock Slumped Friday Morning — but Shouldn't Have – The...

Why Apple Stock Slumped Friday Morning — but Shouldn't Have – The Motley Fool

Ads

Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.
Motley Fool Issues Rare “All In” Buy Alert
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Shares of Apple (AAPL -1.51%) tumbled Friday morning, falling as much as 2.2%. As of 11:57 a.m. ET, the stock was still down 1.8%.
The broader market indexes were caught in a downdraft, which no doubt contributed to the iPhone maker’s slump. However, even as the tech giant fell, there were several reports that held positive news for the company — and shareholders.
Earlier this month, Apple announced the latest version of its popular earbuds, the second generation of the AirPods Pro. The earliest reviews of the fan-favorite devices are in — and users are raving.
CNET called them “the best small earbuds you can buy,” citing the improved sound, active noise cancelation, and better battery life, saying they “deliver exceptionally good performance for their size.” At the same time, TechCrunch said “you won’t want to take them out of your ears,” also applauding the better sound, active noise cancelation, transparency mode, and the case that supports wireless charging. These accolades came as AirPods hit stores today.
It’s worth noting that Apple’s commitment to technological innovation has helped it take a majority share of the U.S. headphone market. 
In perhaps even bigger news, the company has inked a multiyear deal with the National Football League, making Apple Music the new sponsor of the NFL Super Bowl halftime show. The centerpiece of the annual championship football game each February, the halftime show is an extravagant event known for hosting some of the biggest performers in the industry, making it a perfect showcase for Apple’s subscription music service.
It’s important to put these developments in the context of Apple’s broader business. The iPhone was responsible for more than 54% of Apple’s $282 billion sales revenue so far this year, so the importance of the company’s flagship device can’t be overstated. 
That said, Apple has worked aggressively at expanding into services, its Apple Music subscription being one such example. The moves are designed to decrease its reliance solely on the iPhone. The company’s unrelenting progress thus far makes Apple stock a buy.

Danny Vena has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Market-beating stocks from our award-winning analyst team.
Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.
Discounted offers are only available to new members. Stock Advisor list price is $199 per year.
Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
Making the world smarter, happier, and richer.

Market data powered by Xignite.

Ads

source

Ads
Previous articleTraveling to Mexico? CDC Warns About Salmonella Newport Risk – Food Poisoning Bulletin
Next articleTaylor Swift and Joe Alwyn's Relationship: A Complete Timeline – Seventeen
Nitika is a MCA graduate and works as all-round news writer at The Hoops News. In free time, she works on Photoshop and plays GTA V on her Xbox. A tech-enthusiast at heart, she explores ways that businesses can leverage the Internet and move their businesses to the next level. You can contact her at nitika@thehoopsnews.com.