AAPL stock fell more than 12% at the market open yesterday, but the stock made up some of that ground today. AAPL ended today up 4.4%, and while analysts are still worried about the near-term effects of coronavirus, some see a year-end rebound.
AAPL is down considerably from its 52-week high of $327.85. With today’s boost, the stock currently closed at around $252.80, but it’s fluctuating in after-hours trading. Even still, it’s up from yesterday’s close of $242.21.
While Apple Stores will remain closed until further notice outside of China, the Trump administration is seeking a $1 trillion stimulus package to offset the economic impact of COVID-19. News of this package sent the Dow up more than 1,000 points during trading today.
As noted by Barron’s, analyst Rod Hall at Goldman Sachs cut his price target for Apple stock today from $300 to $265. Hall has also reduced his estimates for the September 2020 fiscal year. In a research note to investors today, Hall said:
Following Apple’s pre-announcement we lowered our demand expectations for domestic China. However, we believe that the current situation warrants increased caution regarding global demand outside of China. This was underscored by Apple’s announcement that they will close retail locations outside of Greater China.
Hall has reduced his revenue forecasts by 4.5% for the March quarter and 5.5% for the June quarter. For June, Hall has trimmed estimates by 2%, but for the December quarter, he’s increased his forecast by 5.5%. Nonetheless, Hall says his estimates may prove to be optimistic:
Given all of this, we are moving to a central thesis that assumes incremental demand weakness in large global markets up through mid-May with impacts attenuating after that. If demand impacts are ultimately as severe as those we have seen in China then our model may prove optimistic.
Apple originally said that all of its retail stores outside of China would be closed until March 27. Overnight, however, it quietly updated the wording on Apple․com to say stores would be closed until further notice. Many other retailers have also announced similar closure plans.