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Apple stock has lost $191 billion in market cap over 2 days on fears of China's crackdown

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Friday, 08 September, 2023, 21:36
Apple stock has lost $191 billion in market cap over 2 days on fears of China's crackdown

Apple stock has shed roughly $191 billion from its market capitalization over the last two days amid moves from regulators in China and Europe.

Shares declined as much as 5.1% on Thursday before paring some of its losses, sending the two-day loss to $242 billion at its low, according to data from YCharts.

The losses come after China banned iPhone use for government officials while at work, the Wall Street Journal reported on Wednesday.

Beijing plans to extend that restriction to a range of state-owned enterprises and government-controlled agencies, a Thursday Bloomberg report said.

It marked the latest move from Chinese policymakers to cut reliance on Western technology and products. The US and China have engaged in an ongoing tech battle, with the US similarly banning public employees from using ByteDance's app, TikTok, on work devices. Some members of Congress have separately proposed laws that would ban the Chinese app nationwide.

Apple is also facing headwinds from Europe. The European Commission on Wednesday named the company as one of six tech companies acting as a "gatekeeper" for online services. Others named in the release included Alphabet, ByteDance, Meta, Microsoft, and Amazon.

Still, Wall Street's outlook on Apple remains largely bullish.

In a note Thursday, Wedbush's Dan Ives downplayed the impact of China's government iPhone ban and also pointed to the upcoming release of the iPhone 15 as something that will drive a "mini super cycle."

And Goldman Sachs strategists published a note on Monday that the tech titan is poised to stay dominant moving forward.