Apple shares plunged nearly 10% on Friday in the tech giant’s worst one-day selloff since March 2020 after it warned that supply constraints and slowing growth would weigh on results in the current quarter — overshadowing an otherwise solid earnings report.
The stock fell as much as 9.7% to around $301, wiping out roughly $475 billion in market value, after CEO Tim Cook blamed a “100-year flood” in memory pricing for squeezing profit margins and acknowledged Apple underestimated demand for its iPhone and Mac lineup.
Investors also balked at Apple’s guidance for the September quarter, with the company forecasting revenue growth of 9% to 11%, below Wall Street expectations of roughly 12%.
The dour outlook offset fiscal third-quarter results that topped analysts’ estimates, with Apple reporting revenue of $109.4 billion and earnings of $2.02 a share.
June-quarter iPhone sales reached a record $54.25 billion, but weaker iPad and services revenue added to concerns that growth is beginning to cool.
Cook, making his final earnings call before handing the CEO reins to John Ternus on Sept. 1, said the company is grappling with an unprecedented surge in memory-chip pricing that has crimped margins.
He also said Apple’s product shortages stemmed largely from stronger-than-expected demand rather than broader supply-chain disruptions.
The sharp selloff marked a dramatic reversal for Apple, shares of which climbed to a record high earlier this week and briefly pushed the company above a $5 trillion market valuation.
Investors will now turn their attention to whether Apple can ease supply constraints and reignite growth as Ternus prepares to take over as chief executive next month.
Amazon shares surged more than 15% after the e-commerce giant posted blowout quarterly results, with revenue of $200.61 billion and earnings of $5.75 a share easily topping Wall Street expectations.
Investors also cheered accelerating growth at its AWS cloud business and upbeat commentary around artificial intelligence, prompting a wave of analyst price-target hikes.
Elsewhere, IES Holdings jumped 33.9% to $765.50, AXT soared 29.6% to $60.84 and Ambarella climbed 19.6% to $88.58.
CareDx and SPX Technologies each gained about 15%, while Newell Brands, Banco Santander Brasil and MSA Safety rose roughly 12%.