Apple shares fell by around 10% on Friday, potentially reducing the company’s market value by nearly $500 billion.
CALIFORNIA: Apple’s position as the world’s most valuable company is facing pressure as concerns over supply chain challenges and weaker financial forecasts raise investor concerns.
According to media reports, the company’s supply chain could be affected due to an AI chip crisis, creating uncertainty over future growth.
Analysts said slower-than-expected growth in Apple’s services business and increasing pressure on the supply chain have further intensified concerns among investors.
The company also suffered a setback following a weaker financial outlook, which impacted market confidence.
According to a British news agency report, Apple shares fell by around 10% on Friday, potentially reducing the company’s market value by nearly $500 billion.
More read, Apple briefly reaches $5 trillion market value as AI race shifts
Earlier, Apple briefly reached a $5 trillion market capitalization milestone on July 28, becoming the first time the iPhone maker crossed the mark as investors pushed its shares higher and renewed confidence grew around its artificial intelligence strategy.
The company’s stock surge also helped Apple overtake Nvidia as the world’s most valuable publicly traded company.
Apple shares climbed to a record high of $342.89 during Tuesday’s trading session before falling slightly. The stock closed at $340.08, leaving the company just below the $5 trillion valuation level.
The technology giant’s shares have gained about 25% this year, outperforming several other major technology companies. Apple is scheduled to report its quarterly earnings on Thursday, which will provide more insight into its business performance and future plans.
