Apple Inc. Shares Plunge Nearly 5%, Market Value Dips Below $3 Trillion Threshold
On August 4, Apple Inc. experienced a significant setback as its shares tumbled nearly 5%, causing the tech giant's market value to dip below the $3 trillion mark. Surprisingly, this decline came despite the company's announcement of better-than-expected quarterly results. This drop marked Apple's most substantial decline in 2023, casting a substantial impact on the S&P 500 and other indexes due to its dominant position as the largest stock on Wall Street by market value.
Starting at USD 185.52 and closing at 181.99, Apple's shares registered a notable decline on August 4. At the close, the company's market share stood at 2.86 lakh crore.
In contrast, Amazon experienced an 8.3% surge in its first trading session after reporting significantly higher profits for the spring, surpassing analysts' forecasts. The company's cloud-computing business showed signs of stabilization during the quarter, further adding to its robust revenue performance.
In July of the same year, Apple made history on Wall Street as the first company to achieve a market value exceeding $3 trillion.
Apple's recent quarterly report showcased a 2.3% growth in profit, reaching $19.9 billion for the fiscal third quarter, thanks to strong performance in the services segment, offsetting a slight dip in iPhone sales. Total sales for the fiscal third quarter, ending on July 1, amounted to $81.8 billion, with earnings per share rising by 5% to $1.26.
The week concluded on a rare losing note for Wall Street, with the S&P 500 sinking by 0.5% to 4,478.03. This four-day downturn followed a 16-month high set earlier in the week and was influenced by mixed reports on the U.S. job market and fluctuations in two of the market's most influential stocks.
Source: CNBC, Reuters