Should You Buy Or Sell Apple Stock Right Now?

Over the past few days, Apple stock has steadily been dropping, ever since the company gave their earnings report on July 21. The report was good, but not as good as many investors were expecting. Plus, the Apple Watch sales were nothing to write home about. According to Business Insider, the stock has dropped a whopping 17% since then, and there are a few reasons for this.

Many analysts are pointing to China, which is showing signs of a struggling economy. They devalued their currency, the yuan, which could spell trouble for Apple as they are one of their largest markets. This down economy could in turn mean less of a demand of iPhones, one of Apple’s largest sellers.

Although the down stock could be an overreaction to this news, others point to the fact that “half of APPL’s revenue growth comes from China.” Essentially, if China suffers, Apple suffers. Then, investors suffer. According to USA today, “Apple is one of — if not the — largest holding by many individual investors,” which means that investors definitely get concerned when it seems like Apple is struggling.

It’s not just in China where people are worried about iPhone sales. Here in the U.S., most people just buy replacement iPhones or upgrade to the newest model, but there are very few new customers, and it’s starting to show in the numbers. Because iPhones make up such a large percentage of Apple’s revenue each year, they will have to find a way to make sure their customers are interested in any new product they create.

So what does all this mean and how should investors react? Well, I really related to an article which emphasized “The stock’s fate and the company’s fate are not always in alignment.” This couldn’t be more true. I also believe that Apple as a company with weather this storm as well as many others. I’m not the only one. Others are saying all the hype is “overblown” and that people are making a bigger deal out of these trends than they need to and scaring investors.

So, let’s look at the facts. Apple is one of the strongest tech companies in the world. Apple has one of the strongest brands in the world. Legions of people are devoted to their products and believe in their craftsmanship and longevity. Apple stock has risen and fallen over the years, but they continue to innovate.

For these reasons, I personally will not be selling my Apple stock and I am not afraid of what the future holds. I believe this is a strong company that will continue to see growth overall in the next few decades. So, I might even be buying more stock if the price drops low enough. As far as what you should do with your Apple stock, that’s entirely up to you. Maybe I’m wrong and this signals the beginning of a sharp decline for Apple, but I have a feeling they’ll bounce back like they always have.