Apple’s Market Value Drops $160B In A Day Due To Slowdown Phase

After the iPhone manufacturer’s outlook for the fourth quarter triggered concerns over lackluster demand for its handsets and other products, Apple Inc.’s market value is now noticeably below the landmark $3 trillion milestone.

The California-based company’s market capitalization dipped to around $2.85 trillion on Friday as shares fell 4.8%. The day’s dip, Apple’s biggest since September, resulted in a loss of market worth more than $160 billion. Apple became the first business with a $3 trillion valuation in June.

Apple reported falling sales for the third consecutive quarter and anticipated continued declines.  

The stock was downgraded to neutral by Rosenblatt Securities, which stated that the mixed report “highlights the slowdown phase in which Apple currently sits.” 

A downturn in the US “seems likely to last until a material new product category takes hold,” despite the company’s Services sector growing. This prospect is “uncertain both in timing and success.” 

According to analyst Barton Crockett, “leaving little reason to favor shares now trading near peak absolute and relative multiples.”

Investors have expressed concern about Apple’s valuation. The stock is valued higher than its historical average and the entire market at around 28 times the expected earnings. 

Citi is upbeat about the future of Apple’s business after only some responses to its financial results were favorable. The company put Apple on a 90-day upside catalyst watch before the anticipated September debut of the iPhone 15 series.

Despite the day’s decline, Apple maintains a 40% year-to-date gain, closely mirroring the performance of the Nasdaq 100 Index.

However, Friday’s drop caused the stock to break below its 50-day moving average for the first time since January, signaling a weakening near-term momentum.