Apple stock plummet erases $40 billion in market cap

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That's a drop the size of Netflix, by the way!
Photo: Ste Smith/Cult of Mac

Following yesterday’s disappointing (but inevitable) Apple earnings call, shares in the company fell by more than 8 percent in after-hours trading. For those keeping track at home, that means that Apple’s market value plummeted by upwards of $40 billion — or the equivalent of the entire market value of Netflix.

Fortunately, things are recovering slightly and stock is currently trading down 6.55 percent priced $97.80.

Because of Apple’s size, any stock crash on its part inevitably causes ripples elsewhere. This morning it was reported that Tuesday’s reported earnings have hit the Swiss National Bank, one of the company’s largest shareholders, particularly hard. Unlike the U.S. Federal Reserve, the central Swiss bank actively invests in a variety of assets — and chose to invest heavily in AAPL at the end of last year. With 10.4 million AAPL shares at the close of 2015, it lost around $80 million overnight as a result of the drop in share prices.

Various hedge funds have also invested heavily in AAPL, which means that the likes of the Vanguard Group (323 million AAPL shares at the end of 2015) and BlackRock (219 million shares at the end of 2015) are also likely to be suffering from the call.

Luckily for the rest of us, not all the news is quite so grim. As I wrote earlier this week, Apple carved out 40 percent of all Silicon Valley profits last year, while there are even reasons to be optimistic following yesterday’s quarterly earnings. In other words, APPL might have taken a hit, but it’s certainly far from out.

Via: QZ