Apple’s shares drops down to $120Bn

Apple Inc. shares dropped after an analyst downgrade exacerbated another wave of selling pressure that wiped out hundreds of billions of dollars in market value from the largest US technology stocks.

The iPhone maker dropped 4.9% after Bank of America cut its rating to neutral from buy, warning of weaker consumer demand for its popular devices. The selloff erased roughly $120 billion from Apple’s market capitalization.

With consumer spending expected to cool across regions, it is said that the demand for Apple’s services has already slowed and product demand is likely to follow. Analysts said that pressure from a stronger dollar will only add to its woes.

Meta Platforms sank 3.7% after CEO Mark Zuckerberg outlined plans to reduce headcount for the first time ever. The social media giant’s shares have fallen 59% this year amid slowing user growth. With a market value of nearly $2.3 trillion, the most valuable company has now fallen about 20% in 2022, compared to a 32% decline for the Nasdaq 100.

The estimates for 2023 profit growth for tech companies in the S&P 500 have declined about 6 percentage points since the start of 2022, compared with a drop of 4 percentage points for the broader index.