The company is now worth less than $3 trillion
Apple lost $160 billion in market value in a single day, and analysts say the company is stuck in a “slowdown phase.”
Apple’s market value is now well below its historic $3 trillion after the iPhone maker’s fourth-quarter guidance raised concerns about sluggish demand for its smartphones and other gadgets. Today, the value of the company is 2.86 trillion dollars.
Shares of the Californian company fell 4.8% on Friday, August 4, leaving a market capitalization of about $2.85 trillion. The daily decline, Apple’s biggest since September, represents a drop in market value of more than $160 billion. In June, Apple became the first $3 trillion company. In its report, Apple reports a third consecutive quarter of decline in sales and predicts similar figures in the current period.
Apple lost $160 billion in one day due to weak iPhone sales
Rosenblatt Securities downgraded the stock to neutral, saying the controversial report “highlights the slowdown phase that Apple is currently in.” While the company’s services business is accelerating, “the U.S. slowdown is likely to last until a significant new product category takes hold.”
Analyst Barton Crockett says the outlook is “uncertain both in terms of timing and success, leaving little reason to favor stocks currently trading near peak absolute and relative multiples.”
Apple shares are up 40% this year, roughly in line with the Nasdaq 100. However, Friday’s decline meant the stock closed below its 50-day moving average for the first time since January.
