Apple shares suffered their worst day since January 2013 yesterday, declining almost 10 percent in a single day. Since its valuation peak of $1.1 trillion in 2018, Apple has lost approximately $450 billion of its market cap.
Having been the world’s most valuable public company, Apple now sits behind Microsoft, Amazon and Google parent company Alphabet among the top-valued tech giants.
At close, Apple’s stock was trading at $142.19, its lowest price since July 2017. However, at that point Apple was still broadly on the ascent. It became the world’s first $700 billion company, then the first $800 billion company in history, then the first $900 billion company, and finally the first $1 trillion company last summer. At time of writing, AAPL’s market cap stands at $674.74 billion.
The decline follows Tim Cook acknowledging that Apple would miss its own earnings guidance for the first time in years. In a Wednesday note to investors, Cook said that Apple would bring in around $84 billion for the three months leading up to the holidays. Apple’s previous guidance had placed its likely earnings between $89 and $93 billion.
It’s important not to panic, however. Interestingly, the last time Apple saw a similar share price decline it was after the 2012 holiday season. That quarter, Apple underperformed with the iPhone 5c and 5s. At the time, many analysts suggested Apple had fallen behind in the screen size war with Android “phablets.” Jump forward to the end of 2013, however, and Apple went on to release the iPhone 6 and 6 Plus, two of its most successful iPhones in history.
In other words, don’t write Apple off just yet!