Coronavirus causes dip in Apple stock

By  | 

On Monday, Apple released a warning that the company will likely no longer be able to meet its second quarter revenue expectations due to the Coronavirus outbreak.

Finance experts say after Monday's guidance review, Apple's stock fell to $7.80 which is about a 2.5 percent dip.

The Coronavirus has caused mass quarantines in China. As a whole, the country is Apple's third largest market and provides a generous portion of revenue to the company.

Without its China based shoppers, the stock took a hit. However, Eugene Graner with Heartland Investor Services says this will likely create a pent up demand for products.

"During quarantine more people are going to notice how much they probably want to upgrade their iPhone because of problems that might be prevalent as they're using so much and they're realizing the upgrades to a new one might be something they like," said Graner.

Graner says that while production missed targets due to warehouses closing in China, the impact is not enough to offset their revenue.

He says the long term plan for Apple is still very expansive and profitable.