After Apple’s Big Drop, There’s Only One Trillion-Dollar Company Left

After Apple’s Big Drop, There’s Only One Trillion-Dollar Company Left


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All of Apple’s stores outside of China are closed.


Photograph by Jenny Evans/Getty Images

Apple
shares have fallen below $1 trillion in market value for the first time since September. That leaves
Microsoft
as the only U.S. company with a valuation above the $1 trillion mark.

Apple stock (ticker: AAPL), which slumped an additional 4% Monday morning to $220.16, has plunged 33%—more than $100 a share—since peaking at $327.20 on Feb. 12. That is a loss in value of $468 billion.

Microsoft shares

(MSFT) have held up a little better. The software giant’s stock is down about 28% in the recent market swoon, reducing the company’s market valuation to $1.04 trillion.

Two other technology companies that briefly crossed the 13-digit valuation level have fallen well below the line.

Amazon
(AMZN) shares have actually outperformed the broader market in the new bear market. While down about 14% from the stock’s February peak, Amazon shares are up slightly for the year, and on Monday were up about 1% to $1,865.05. The company has a market cap of about $924 billion.

Alphabet
(GOOGL) shares haven’t fared as well. The stock is down 34% in the current downdraft, and now has a market cap just under $700 billion. The stock was off about 5% Monday morning.

Instinet analyst Jeffrey Kvaal trimmed his price target on Apple shares on Monday to $225 from $295, while keeping a Neutral rating on the stock. He cut his profit estimates on the company to $13.20 a share from $13.69 for the fiscal year ending in September, and to $15.35 from $15.69 for fiscal 2021.

“Apple has closed all stores outside of China, though China has opened again,” Kvaal wrote in a research note. “Many operator stores in the U.S. and in Europe are also closed. AT&T and T-Mobile announced they are closing 40% and 80% of stores even before the U.S. lockdowns were in place. We do not expect online sales to make up much of the loss; we believe online comprises only 10-15% of phone sales.”

Write to Eric J. Savitz at eric.savitz@barrons.com

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