Apple lost the historic market capitalization of 3 trillion USD

The less optimistic hardware outlook caused Apple stock to drop nearly 5% at the end of the week, dragging its market capitalization below $3 trillion.

Closing the session on August 4, Apple shares fell 4.8%, making its market value only 2.850 billion USD. The $160 billion one-day drop in capitalization was also the largest since September 2022.

Apple shares fell after the company released its quarterly financial report ended July 1. Accordingly, Apple's revenue fell for the third consecutive quarter, with $81.8 billion, lower than forecast and down 1.4% year-on-year. Apple also warned of a similar situation this quarter.

Apple stock movements since the beginning of the year. Graph: Bloomberg

Last quarter, Apple's core hardware business posted lower-than-expected revenue. In which, iPhone brought in 39.67 billion USD and Mac brought in 6.84 billion USD. However, the company's profit still increased 2.3% compared to the third quarter of 2022 and reached 19.9 billion USD.

According to Rosenblatt Securities, the report shows "Apple's deceleration". Apple's Services segment is accelerating, with revenue of $21.21 billion - the highest ever. However, the dismal business performance in the US market may persist.

In June, Apple became the first company in the world to hit the $3 trillion market cap, as tech stocks have recently been favored by the AI ​​wave.

Apple's capitalization has always been an investor's concern. The company's share price-to-earnings (P/E) ratio is currently 28 - the highest in Apple's history and also higher than the overall market. Apple shares are up 40% this year, equivalent to the Nasdaq 100 index.