Apple's stock suffered what some US market analysts are calling "a mini flash crash" on Monday, plunging by about 6 per cent between 9:50 and 9:51 a.m. in New York before making moving up again, though it still closed down more than 3 per cent.
The iPhone maker's volume spiked to 6.7 million shares around 9:50 a.m. in New York - the largest one minute volume of trading since Oct. 29.
According to market experts who spoke to business news channel CNBC, here's what could have happened:
1. Credit rating change
RBC Capital Markets analyst Amit Daryanani told CNBC that 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." Morgan Stanley also cut its Apple weight to 3 per cent from 4 per cent and recommended clients trim their position in Apple.
2. Investors just wanted to cash out
Lou Basenese, founder of Disruptive Tech Research, told CNBC that while he's not hearing anything specific, the most reasonable explanation is that investors were just ready to take profit.
"I think the most logical explanation is profit taking. Shares were up about 25 per cent off the October lows, compared to a 10 percent move for the Nasdaq," Basenese was quoted as saying.
3. Apple also had weak Black Friday sales
There was some market chatter that Apple, like its peers, also had weak Black Friday sales, said CNBC, with some traders saying Apple may also be falling victim to a retailer selloff.