Apple shares tumbled nearly 2% on Monday despite the company unveiling a series of new services at its campus in Cupertino, California.
The technology giant announced a new streaming-television service, all-you-can-read magazine subscription, a physical credit card, and a gaming bundle. This development certainly suggests that Apple is transitioning from a hardware company to service-based– a move that is seen boosting growth potential. However, today’s negative reaction suggests that Apple shares are more concerned with other pressing matters. While the company’s stocks have the potential to push higher, upside gains remain capped by external factors.
Concerns over slowing global growth coupled with geopolitical risk factors continue to sour appetite for riskier assets. With risk aversion likely to remain a market theme amid the uncertainty, global equity markets are likely to continue feeling the heat with Apple falling into the category.
In regards to the technical picture, Apple shares remain in a bullish trend on the daily charts despite the drop witnessed today. However, a breakdown below the $184.73 higher low threatens the current uptrend with the next level of interest back at $180.00.