Apple Stock Crashes, Contrasting the Recent Stock Market Surge

Stock markets have been surging recently, led by Nvidia and other tech companies, but Apple stock has been bearish and today AAPL shares are crashing lower. The reason for the bearish gap today is a $1.95 billion fine by European authorities over music streaming, which is weighing on Apple stocks.

Apple Stock Daily Chart – Opening With A $10 Gap Lower Today

Stock markets have been surging in the last several months, as traders anticipate central banks to start a policy easing period soon, and tech stocks are leading the way. But not Apple shares which have been bearish and are plummeting now. AAPL was trading at $200 by December, but turned lower and have been making lower highs since then. The area around the $185 level was holding as support for two months, but that support zone was broken today after the bearish gap. Now Apple stock is trading at $174 and continues to slip lower, looking very bearish.

Apple Ending the EV Car Business

One of the main reasons for the bearish reversal in December was the decision from Apple to cancel its plans to build electric vehicles (EVs) marks a significant development in the tech giant’s automotive ambitions. Despite speculation that Apple had been working on EVs for approximately a decade, the company has now reportedly decided to abandon these efforts. This decision suggests a shift in Apple’s strategic focus away from the automotive industry, which is not an easy one to succeed.

European Commission Fines Apple $1.95 Billion

The EU Commission imposed a significant fine of 1.8 billion euros ($1.95 billion) on Apple for allegedly abusing its position as a main player in the market for distributing music streaming apps. The commission found that Apple had imposed restrictions on app developers, preventing them from letting clients know about cheaper alternative services for music, not available within the app. This marks one of the largest antitrust fines levied by the EU against a technology company and represents Apple’s first such fine from Brussels. This has turned Apple shares bearish. In morning trading on the stock market today, Apple’s stock dropped more than 2% to $174.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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