What To Expect From Apple's Stock After This Week's Big Drop

• Apple Inc. AAPL’s stock fell by more than 3.0 percent on Tuesday following a report of reduced iPhone component orders.
• A one-day decline of this size is a relatively common occurrence for Apple.
• Data shows that the stock has typically generated positive returns in the 10 days following a one-day drop of this magnitude.
 

AAPL data by Market Memory

Longer-term outlook
A 3.0 percent one-day drop has happened about eight times per year for Apple over the past four years, and the stock has returned an overall gain of 113.3 percent during that time. While any potential weakness in Apple’s iPhone cash cow is certainly troubling for shareholders, the one-day decline in itself is nothing to be concerned about.

Apple followed up Tuesday’s big drop with a modest 0.5 percent decline in Wednesday’s session.
 

Disclosure: the author holds no position in the stocks mentioned.