Apple’s share price took a dive on Monday morning, dropping about 6 percent before making a slight recovery.
The iPhone maker’s volume spiked to 6.7 million shares around 9:50 a.m. ET. It was the largest one minute volume of trading since Oct. 29, according to Reuters.
Why the stock took a hit wasn’t so clear.
RBC Capital Markets analyst Amit Daryanani said traders told him reasons for the selling may include a rating change Morgan Stanley made Monday, cutting the U.S. technology sector to “market weight” from “overweight.” The firm also cut its Apple weight to 3 percent from 4 percent and recommended clients trim their position in Apple.
Daryanani also said that there is chatter of program selling in tech.
Scott Redler, partner with T-3Live.com, said Apple broke its eight-day moving average for the first time in weeks, and after it fell through $117, there was no support so it dropped to $111.27. By late morning, it was at $115.81 a share.
Lou Basenese, founder of Disruptive Tech Research, said that while he’s not hearing anything specific, the most reasonable explanation is that investors are just ready to cash out.
“I think the most logical explanation is profit taking. Shares were up about 25 percent off the October lows, compared to a 10 percent move for the Nasdaq,” Basenese said.
He added that an upgrade Barclays made on Monday could also be having a reverse effect.
“Today’s price target increase from $120 to $140 at Barclays might actually be negatively impacting the stock, as investors fear analysts are getting too bullish,” Basenese said.
There was some chatter that Apple, like its peers, also had weak Black Friday sales.
Some traders said Apple may also be falling victim to a retailer selloff.