- In the wake of the prevailing COVID-19 storm, tech entities seized the opportunities posed by the global technology trends such as cloud computing, IoT, AI and digital payments.
- Nasdaq Composite index, closed at 10,963.64 points, up by 1.71%, as on 22 September.
- Earlier this month, massive sell-off in major technology shares such as Facebook, Amazon, Tesla, Apple, Alphabet, Microsoft, and Google was witnessed, dragging the technology bellwether index into the correction territory.
- However, on 22 September 2020, Apple share price settled the day’s trading session at US$111.81, up by 1.57% from its previous close.
- Apple, in its recent product event on 15 September 2020, launched a flock of new hardware and services, consisting of a new Apple Watch and two new iPad models, Apple one service bundles.
With the outbreak of COVID-19, the performance of the stocks, globally gave an impression of being knocked with a hammer. March was one of the historic months that experienced tumbling down of financial market.
In the COVID-19 pandemic era, technology played at the front foot, and a number of tech entities seized the opportunities posed by the global technology trends such as cloud computing, virtual conferencing applications, digital platform, IoT, AI and digital payments.
Even though the technology space performed remarkably amid the crisis, the stock markets have been demonstrating volatility.
Nasdaq Composite index, stormed higher and closed at 12,056.44 points, after hitting a high of 12074.07 intra-day, on 2 September 2020, and by 21 September, it reached 10778.80, down by nearly 10.73%.
The decline came on the back of massive sell-off in major technology shares such as Facebook, Amazon, Tesla, Apple, Alphabet, Microsoft, and Google witnessed since the beginning of September 2020, dragging the technology bellwether index into the correction territory.
What caused the Turnaround?
However, on 22 September, the Nasdaq Composite Index climbed up the ladder and ended the market session 1.71% higher than the previous close at 10,963.64 points.
The index received a boost through the solid performance of technology giants like Apple, Microsoft, Alphabet and Facebook that ended the day’s session at 1.57%, 2.41% 2.8% and 2.66% higher than their previous close.
An interesting one; Technology Space in the face of COVID-19; Investment Tips for Tech Stocks
One of the FAANG stocks which is renowned for its innovative products and massive progress trajectories, Apple Inc. (NASDAQ:AAPL) share price gave a negative return of 16.67% between US$134.18, recorded on 1 September to US$ 111.81, on 22 September 2020.
Though, over the last month period, Apple had swept the market, reaching the market capitalisation of over US$2 trillion, surpassing Saudi Aramco as the most valuable public listed company, in the world.
Moreover, it is believed that demand for Apple's shares augmented the Company's decision to split its shares to make it accessible to a diverse range of individuals. Officially, on 31 August 2020, Apple’s shares started trading at the new split-adjusted price at Nasdaq’s opening session.
However, things changed subsequently, and Apple share price experienced a volatile movement, noting a major sell-off amid its recently held product event on 15 September 2020, a first one in 2020.
Apple launched a flock of new hardware and services, consisting of a new Apple Watch and two new iPad models, Apple one service bundles.
However, they did not announce any new iPhone.
An interesting watch; What is happening with Apple Shares?
11% top line growth recorded in Apple’s Q3 2020 Results
On 30 July 2020, Apple unveiled its third quarter results ended 27 June 2020 and highlighted boosted revenue growth of 11% (pcp) to US$59.7 billion, driven by inflated double-digit increase in products and services, and progress in all its geographical segments.
For Q3 FY20, services and wearables, home and accessories segment were recorded as US$13,156 million and US$6,450 million, respectively as compared to US$11,455 million and US$5,525 million, respectively in Q3 FY19.
Following are few of the highlights from Apple’s remarkable business performance during Q3 FY20:
- Earnings per diluted share witnessed a y-o-y increase of 18% and was reported as US$2.58.
- Apple’s international sales consisted of 60% of the revenue for Q3 FY20.
- Apple’s operating cash flow stood at US$16.3 billion.
- Apple noted total cost of sales of US$37 billion during Q3 FY20, bestowing a gross margin.
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