Market Views
How Apple lost over $500 billion in 12 trading days
Apple has lost about 22.6% from its intraday record high of $137.98 recorded on September 2.
In Issac Newton’s words, “what goes up usually comes down”. In Apple’s case, it took about 12 trading sessions for the world’s most valuable listed company by market value (Apple Inc) to lose more than $500 billion in market capitalization, showing a whooping decline of more than 20%.
The tech juggernaut has plunged about 22.6% from its intraday record high of $137.98 recorded on September 2 losing about $532 billion in market value.
Why it’s happening; Apple’s fast and whooping fall followed its massive run-up in August ahead of its 4-for-1 stock split, while record losses also came as Apple’s recent product event disappointed many investors and its fans globally.
Toni Sacconaghi, senior research analyst at Bernstein in a note to CNBC, called the event “relatively underwhelming.”
“We believe it could be difficult to move users from competitive music, video, or gaming services, where they are often entrenched,” Sacconaghi said in a note. “We continue to believe that Apple should look to more creatively bundle its hardware + services into integrated subscription bundles.”
Sequel to Apple’s recent fall, Nairametrics about a month ago broke the news showing how the tech juggernaut crossed the $2 trillion mark in market valuation – the first company in the world to achieve this feat.
Apple was also the first company to cross the $1 trillion market capitalization mark.
Apple became the first company to cross $2 trillion after riding on a wave of positive market sentiments that has trailed the United States since the Trump Administration pumped in trillions in stimulus in response to the Covid-19 pandemic that shut down the economy of the richest country in the world.
That said, the fall of Apple’s share price in recent days came amid a significant sell-off in the tech sector as stock traders shifted out of the market-leading high-flyers. The tech-heavy Nasdaq Composite had dropped into correction territory, down more than 10% from its record high.
Market Views
Ethereum breaks $4000 and 5 Big Takes for the week
The 2nd week of May promises to be a profitable week, spurred on by the activities of last week.
The 2nd week of May promises to be a profitable week, spurred on by the activities last week. Here are the key events that affected the economy and markets last week.
What are the regulators doing?
CBN made the news in two major ways. Firstly, the apex bank indefinitely extended the Naira4dollar scheme for diaspora remittances. The initiative rewards recipients N5 for every $1 they receive through IMTOs and commercial banks. It was initially supposed to end on May 8th. Many analysts we have spoken to seem to believe this is another form of naira devaluation.
Another interesting news from the CBN was its plans to reject the continuous importation of maize in Nigeria.
READ: Why Ethereum is becoming more attractive than Bitcoin
What fixed income opportunities are available?
Last week the DMO (Debt Management Office) announced an offer for subscription of the May 2021 Federal Government Savings Bond to investors.
The Debt Management Office (DMO), on behalf of the Federal Government has announced the offer for subscription of the May 2021 Federal Government Savings Bond to investors.
This disclosure is contained in a circular issued by the DMO on May 3, 2021, and can be seen on its website noting that there are 2-year and 3-year savings bonds. The breakdown of the bonds shows that the 2-year FGN savings bond will be due on May 12, 2023, at 7.753% per annum and the 3-year FGN Savings Bond which will be due on May 12, 2024, at 8.753% per annum.
The offer has an opening date of May 3, with a closing date of May 7. Although this window is closed. Portfolio diversification is critical for any investor and bonds are one of the safest asset classes.
READ: Nigerian stocks that outperformed Bitcoin, Ethereum and Cardano in April
Should volatility in Crypto shock anybody?
Over the weekend, another incredible market volatility transpired with the Dogecoin going down about 21.34% for the day on Sunday. Elon Musk´s appearance on SNL seems to have had a negative effect on the crypto asset’s price.
Ethereum at the time of writing this report is currently trading at an all-time high of $4,053, up by 2.72% in 24 hours. There are many investment opportunities in cryptocurrencies but because of the tremendous market volatility, it is important for investors to invest with caution. The rule of thumb is not to invest more than you are willing to lose.
READ: Why Ethereum transaction fees are often expensive
Stock market bounce?
The Nigerian Stock Exchange made a bullish recovery on Friday. Its year-to-date stands at -2.66%. There is still a lot of upside for Nigerian stocks which remain relatively cheap compared to other emerging markets. In a Twitter Spaces conversation with Ugodre Obi-Chukwu, analysts stated that the true value of the Nigerian economy is not reflected in the NGX. ¨Out of the 166 listed companies, only about 30 are tradeable,¨ according to one analyst.
In a period where there should be a lot of capital allocation to emerging markets like Nigeria, a major deterrence to this is our FX situation. Investors have issues getting their money out of the Nigerian economy.
Another Corruption case
It was reported that the FG will probe the suspended MD of Nigerian Ports Authority, Hadiza Bala-Usman for the alleged non-remittance of over N165 billion operating surplus to the Consolidated Revenue Fund by the NPA management.
Billionaire Watch
Bill Gates’ cash can buy Nigeria’s Stock Market
Founder of Microsoft, Bill Gates’ cash in the bank can currently buy Nigeria’s stock market.
Founder of Microsoft, Bill Gates’ cash in the bank can currently buy the Nigerian stock market.
Most recent data postulates that the tech billionaire currently holds about $59.1 billion in the bank, far surpassing Nigeria’s Stock Exchange valuation of $53.7 billion (N20.4 trillion) at the time this report was drafted.
Bill Gates Net Worth amid Divorce With Melinda
The American billionaire is currently the fourth richest man in the world and his net worth is at a record high despite transferring nearly $2.4 billion in securities to Melinda Gates via Cascade Investment, Bill Gates investment vehicle, after filing for a divorce.
The troubled couple however affirmed their plan on remaining co-chairs and trustees of the Bill & Melinda Gates Foundation. Bill Gates’ close confidant, Warren Buffett is the foundation’s third trustee.
Bill Gates’ wealth is currently valued at $146 billion and he is estimated to have gained 14.1 billion in barely four months.
READ: Bill Gates holds far more cash than Nigeria’s foreign reserve
Gates has earned more than $50 billion in stock and dividends, including a $3.3 billion payout from Microsoft in 2004, as he owns about 1% of the world’s biggest software company.
He is the biggest shareholder of Canada’s biggest railroad operator, the Canadian National Railway.
Bill Gates made his wealth when he simplified the computer operating system by creating Microsoft Windows, the leading operating system in personal computers globally.
The billionaire has also disclosed that he doesn’t have any Bitcoin and spoke on the high price swing of the flagship crypto, often driven by “mania” prevailing in crypto markets making it hard for a normal investor to predict the crypto asset’s trajectory.
READ: The Gates Divorce: Bill Gates’ Holding Company transfers $1.8bn of equities to Melinda Gates
The data above shows that Bill Gates holds a significant amount of his wealth in cash, although it is noteworthy that he also has exposures in global equities, real estate, and collectables, which are also significant wealth creators for him.
Market experts have opined that the rationale behind holding so much cash amid rising inflation is to fund his philanthropic missions as he donates much of his wealth to causes that help better the world.
Gates’s current wealth valuation can at present, buy 80.2 million troy ounces or 2.14 billion barrels of crude oil.
