Just a day after cutting down on revenue guidance, Apple’s stock plummeted by 10 per cent. This was a rare manifestation of warning sales, and the company experienced one of the most significant losses in its history. At the close of stock trading on Thursday, the company was trading at $142.19. This figure represents the lowest mark in the company’s trading since July 2017.
Worst since January 2013
The most recent drop means that the company has now recorded its worst day in office at the stock exchange since January 2013. The worst part is that this record is just an extension of poor year-end performance which has now extended over into 2019.
Looking at the current figures, it is difficult to imagine that the Stocks once traded at more than $230 for every share. The problem started when they were slashed by more than 30 per cent in the last quarter of 2018 alone.
Although they were dropping rapidly, some experts hoped that they would come back to the upward trend before the close of the year. However, they went even further, and this is cause for alarm for the company which has on many occasions set the records when it comes to the growth of the stock.
The current market valuation
The massive drop on Thursday pushed the market value of apple below $700 billion. The implication is that the company now falls behind the market cap of Alphabet, and it is currently ranked fourth among the most publicly traded United States companies.
It is important to note that although they are now fourth, they occupied the top position just two months before the recent drop. When they held the top spot, there seemed no sign that they would take the downward trend and so, most observers are still unable to explain the situation.
A statement from Apple suggested that the drop in stock was a result of upgrade cycles that took longer than planned. In addition to that, the company believed that the headwinds in China could have played a significant role in the creation of the current situation.
These two situations caused below average sales of iPhones. Because of these happenings, the company estimates that the revenue collected from the first quarter of 2019 could be as little as $9 billion below the previous projections. One thing that is without a doubt is that shareholders have been waiting for this admission for a long time now, especially with the reports about supply chain cuts.