Apple, the richest company in the world, has lost more than $120 billion in a stock market correction which saw their shares drop by 20%.
The company is worth more than $550 billion and such a thing is common due to investors realizing a company’s true value. Apple has been overpriced but that’s understandable because they consistently post so much profit.
MCV reports that Apple’s market capitalization reached $660 billion during iPhone 5’s launch.
Such a thing is not that surprising as I mentioned earlier and the company can very well stay on top for a long time until its popular products sell well in the market. Share market is an unpredictable one and such a thing are common.
Apple should release a new dividend soon which should soothe investor confidence, just like they did last time when they issued a $45 million share buy back.
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