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Apple stock sinks 7% after Tim Cook warns of ‘100-year flood’ in memory prices
New York Post • • business
Key Points:
- Apple shares dropped 7% on Friday, marking the company's worst one-day selloff since March 2020, due to concerns over supply constraints and slowing growth despite solid quarterly earnings.
- CEO Tim Cook cited a "100-year flood" in memory pricing that squeezed profit margins and acknowledged underestimating demand for iPhones and Macs, contributing to the stock decline.
- Apple forecasted September quarter revenue growth of 9% to 11%, below Wall Street's expected 12%, overshadowing its fiscal third-quarter results which reported $109.4 billion in revenue and $2.02 earnings per share.
- The selloff erased about $475 billion in market value, following a recent record high that briefly pushed Apple's valuation above $5 trillion; investors now focus on the company's ability to manage supply issues as John Ternus prepares to become CEO.
- In contrast, Amazon shares surged over 15% after beating earnings expectations with $200.61 billion in revenue and strong AWS growth, while several other tech stocks, including IES Holdings and Ambarella, also saw significant gains.
