Millennials are piling into Apple after it warned of a slowdown linked to China
- Apple last week slashed its revenue guidance for the holiday quarter and blamed slumping sales on a slowdown in China.
- As shares faced selling pressure following the announcement, down as much as 10%, millennials traders on Robinhood were piling into the stock.
- Since peaking at $233.47 on October 3, Apple has lost 35% of its value. During the same time period, the number of Robinhood investors holding Apple shares increased by 30%.
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Apple last week sounded the alarm on a holiday sales slowdown, but investors on Robinhood, a no-fee trading app popular among millennials, brushed off the company's warnings and instead snapped up shares.
Last Wednesday, the tech giant said its revenue for the holiday quarter would be more than 7% below what it had expected and blamed slumping sales on a slowdown in China. Seven days later, the Nikkei Asian Review reported that Apple late last month asked its suppliers to cut production on new iPhones by 10% for the January-March quarter.Apple shares were hit hard over the past week, down as much as 10%, but that didn't scare millennials away from the stock. According to weekly data tacked by Markets Insider, Apple is now held by 235,900 Robinhood traders, up 15,095 from a week ago. The smartphone titan has consistently been the favorite stock or Robinhood users, outranking all the others in each of the past nine weeks.
And millennial's affection for Apple has strengthened as shares have weakened.
On November 1, the company posted underwhelming iPhone sales and said revenue for its holiday quarter would be on the low end of analyst expectations. During that week, a net 14,013 Robinhood users added Apple to their portfolio, allowing it to reclaim its crown as the most-popular stock on the app.
In mid-November, a handful of iPhone suppliers, including the main Face ID technology provider Lumentum and iPhone radio-frequency chip supplier Qorvo, cut their outlooks, citing a drop in demand from one of their biggest customers. At the time, Apple became the first stock to have 200,000 owners on Robinhood, with a net 2,845 users buying the stock that week.
Since peaking at $233.47 on October 3, Apple has lost 35% of its value. During the same time period, the number of Robinhood investors holding shares increased by 30%, or 55,000.
Apple was down 12% in the past twelve months.
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