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Apple stock could post its biggest post-earnings drop in 13 years, wiping out $460 billion in market value

2026-07-31·newswire-us-stock-182144
Apple stock could post its biggest post-earnings drop in 13 years, wiping out $460 billion in market value.

Apple shares fell as much as 9.3% in early trading Friday as investors reacted negatively to the company’s weak financial guidance, which reflects supply-chain pressure. Apple acknowledged that high memory prices and supply-chain constraints are expected to weigh on profit margins.

The company forecast a gross margin of 47% to 48% for the September quarter, down from about 50% in the June quarter, even after including a positive impact of about 1 percentage point from tariff refunds.

Chief Executive Officer Tim Cook said on the earnings call that Apple is facing very significant constraints and has limited flexibility in its supply chain to address them. Supply restrictions could also erode revenue opportunities for the iPhone, iPad and, particularly, the Mac.

Apple’s revenue outlook implies growth of 9% to 11% for the September quarter, below the more than 12% consensus forecast from FactSet. Evercore ISI analysts said investors may have difficulty accepting the company’s margin trajectory in the second half of the year.

Analysts said some of Apple’s difficulties stem from its own success: The company underestimated demand, and especially strong Mac sales forced it to procure advanced components earlier than planned. Bernstein analysts said that although memory-cost pressure is concerning, Apple’s position remains unmatched.

If the decline holds through Friday’s close, it would be Apple’s worst post-earnings performance since Jan. 24, 2013, when the stock fell 12.4%, and its biggest one-day decline since March 16, 2020, when it fell 12.9%. The decline could wipe out about $460 billion in market value. Even after the drop, Apple shares remain up about 11% year to date.

#Stocks #Apple #Earnings #Trade

Full text

Apple stock could post its biggest post-earnings drop in 13 years, wiping out $460 billion in market value

Apple shares fell as much as 9.3% in early trading Friday as investors reacted negatively to the company’s weak financial guidance, which reflects supply-chain pressure. Apple acknowledged that high memory prices and supply-chain constraints are expected to weigh on profit margins. The company forecast a gross margin of 47% to 48% for the September quarter, down from about 50% in the June quarter, even after including a positive impact of about 1 percentage point from tariff refunds. Chief Executive Officer Tim Cook said on the earnings call that Apple is facing very significant constraints and has limited flexibility in its supply chain to address them. Supply restrictions could also erode revenue opportunities for the iPhone, iPad and, particularly, the Mac. Apple’s revenue outlook implies growth of 9% to 11% for the September quarter, below the more than 12% consensus forecast from FactSet. Evercore ISI analysts said investors may have difficulty accepting the company’s margin trajectory in the second half of the year. Analysts said some of Apple’s difficulties stem from its own success: The company underestimated demand, and especially strong Mac sales forced it to procure advanced components earlier than planned. Bernstein analysts said that although memory-cost pressure is concerning, Apple’s position remains unmatched. If the decline holds through Friday’s close, it would be Apple’s worst post-earnings performance since Jan. 24, 2013, when the stock fell 12.4%, and its biggest one-day decline since March 16, 2020, when it fell 12.9%. The decline could wipe out about $460 billion in market value. Even after the drop, Apple shares remain up about 11% year to date.

Apple shares fell as much as 9.3% in early trading Friday as investors reacted negatively to the company’s weak financial guidance, which reflects supply-chain pressure.

Apple acknowledged that high memory prices and supply-chain constraints are expected to weigh on profit margins. The company forecast a gross margin of 47% to 48% for the September quarter, down from about 50% in the June quarter, even after including a positive impact of about 1 percentage point from tariff refunds. Chief Executive Officer Tim Cook said on the earnings call that Apple is facing very significant constraints and has limited flexibility in its supply chain to address them.

Supply restrictions could also erode revenue opportunities for the iPhone, iPad and, particularly, the Mac. Apple’s revenue outlook implies growth of 9% to 11% for the September quarter, below the more than 12% consensus forecast from FactSet. Evercore ISI analysts said investors may have difficulty accepting the company’s margin trajectory in the second half of the year.

Analysts said some of Apple’s difficulties stem from its own success: The company underestimated demand, and especially strong Mac sales forced it to procure advanced components earlier than planned. Bernstein analysts said that although memory-cost pressure is concerning, Apple’s position remains unmatched.

If the decline holds through Friday’s close, it would be Apple’s worst post-earnings performance since Jan. 24, 2013, when the stock fell 12.4%, and its biggest one-day decline since March 16, 2020, when it fell 12.9%. The decline could wipe out about $460 billion in market value. Even after the drop, Apple shares remain up about 11% year to date.

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