Apple shares plummet following Tim Cook letter

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Tim Cook earnings apple
AAPL shares declined in after-hours trading.
Photo: Ste Smith/Cult of Mac

AAPL shares fell steeply in after-hours trading on Wednesday, after Tim Cook acknowledged that Apple’s earnings would underperform its own guidance for Q4 2018.

Shares fell by more than 7.4 percent, declining as low as $146.22. That’s the lowest that Apple has hit since July 12, 2017. It means that Apple has lost a massive 35.5 percent of its value in just three months.

The reason for the sell-off was Tim Cook telling investors that Apple would bring in around $84 billion for the three months leading up to the holidays. That’s less than Apple’s own previous guidance, putting likely earnings between $89 and $93 billion. It’s also considerably lower than Wall Street guidance, which expected Apple to pull in around $94 billion for the quarter.

Apple has had a massively unpredictable few months with regards to its own stock price. After becoming the first public company in history valued at $1 trillion last summer, AAPL peaked in early October when it was trading at $232.07.

It recovered slightly following Christmas, when its stock experienced its biggest rise in five years. However, it was still trading considerably down from its height.

Officially, Apple closed at $157.92 on Wednesday, although it will likely open far below this today. Apple’s suppliers were negatively affected too. Analog Devices fell 1.3 percent, Jabil Circuit fell more than 3 percent, and Texas Instruments declined 3.7 percent.

Source: The Street