Down 30% From Record Highs, Apple Is the Ultimate Contrarian Buy
The coronavirus pandemic has sent the market spiraling downward. The S&P 500 is already down over 30% year to date, and this sell-off has driven many technology stocks lower in the last month as well. Industry heavyweight Apple (NASDAQ: AAPL) is also down 30% from the highs it recorded in February, and it now looks like a solid bet for contrarian investors.
COVID-19 will take a serious toll on Apple's business as the company generates more than 60% of its revenue from international markets. The Greater China region accounted for 16.5% of sales in the trailing 12-month period. As China was the epicenter of the outbreak, the country has seen a massive decline in consumer spending.
For the first two months of 2020, retail sales have plunged more than 20% year over year. Now, COVID-19 is severely affecting European countries such as Italy, Spain, and France. Investors should expect a similar decline in demand in this region, where Apple generated 23.6% of sales in the past year.
Source Fool.com
