Apple’s Market Value Plummeted by $160 Billion within a Single Day

**Apple’s Market Value Falls Below $3 Trillion Amid Worries of Weak Demand for iPhones and Gadgets**

Apple Inc.’s market value has dropped below the historic $3 trillion level, raising concerns about tepid demand for its iPhones and other gadgets. The California-based company’s shares fell 4.8% on Friday, resulting in a market capitalization of about $2.85 trillion. This decline of more than $160 billion in market value is the largest drop for Apple since September.

**Apple’s Declining Sales and Outlook for the Fourth Quarter**

Apple reported its third consecutive quarter of declining sales and forecasted a similar performance for the current period. This mixed report highlights the slowdown phase in which Apple finds itself. While the company’s Services business is showing growth, the slowdown in the U.S. market is expected to persist until a material new product category emerges. Analysts suggest that the timing and success of such a new product category remain uncertain, leading to skepticism among investors and causing the stock to trade near peak multiples.

**Apple’s Valuation and Concerns for Investors**

Investors have expressed concerns about Apple’s valuation, as the stock trades at about 28 times estimated earnings, which is a premium compared to both its own historical multiples and the overall market. Such a high valuation raises questions about the company’s future growth potential and profitability.

**Mixed Reactions to Apple’s Results**

While some investors are skeptical about Apple’s outlook, others remain optimistic. Citi, for instance, placed Apple on a 90-day upside catalyst watch ahead of the expected release of the iPhone 15 series in September. This indicates that there is anticipation for positive market performance and potential growth in the near future.

**Apple’s Stock Performance and Weak Near-Term Momentum**

Although Apple’s stock has risen by 40% this year, tracking the performance of the Nasdaq 100 Index, Friday’s decline has caused the stock to close below its 50-day moving average for the first time since January. This suggests a weaker near-term momentum for the stock.

In conclusion, Apple’s market value has fallen below the $3 trillion mark due to concerns over weak demand for its iPhones and gadgets. The company’s declining sales and cautious outlook for the fourth quarter have raised skepticism among investors. Furthermore, the high valuation of Apple’s stock has prompted concerns about its future growth potential. However, there are still some optimistic views, with the anticipation of positive catalysts like the release of the iPhone 15 series. Overall, the stock’s weak near-term momentum indicates uncertainty about Apple’s immediate future.

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