Apple saw a record $180 billion erased from its market valuation on Thursday, the most any U.S. company has ever lost in a single trading day, after the stock dropped 8% amid a broader market rout driven by investors fleeing record-high tech stocks.
Apple was down another 2.2% at $118.22 in afternoon trading on Friday, recovering from an even steeper drop earlier in the day.
Shares of Apple ended the trading day Thursday down 8%, or $10.52 a share, at $120.88, its worst one-day share decline since March 20, when the Cupertino, Calif.-based company fell about 6.4% amid the whirlwind of the pandemic market panic.
The decline follows Apple’s climb into the trillion-dollar-valuation club, which it entered just two weeks ago on the back of a broader rally in tech stocks as well as stronger-than-expected sales and its recent 4-for-1 stock split.
Overall revenue for the iPhone maker’s fiscal third quarter ended June 27 came in at $59.7 billion – up 11% from a year ago and well ahead of Wall Street analysts’ forecasts of $52.3 billion.
It also came just two years after the company took first prize for reaching $1 trillion in market cap on the back of surging iPhone sales as well as strong growth in its ecosystem of cloud-based services and software.
Meantime, Apple is prepping its suppliers to mass-produce more than 75 million of its new 5G-enabled iPhones ahead of the phone’s fall launch, a sign of how much demand it is anticipating for its flagship product even amid the global pandemic and economic downturn.
To be sure, Apple wasn’t the only tech company to lose its proverbial sheen in Thursday’s selloff. Amazon lost 4.6% and Facebook gave back 3.8%. Even with Thursday’s losses, Apple is still up 64.7% for the year, and Amazon is up 82.3%. Zoom Video Communications is still up 460.4%.
For his part, Apple Maven Daniel Martins sees both the short and long side of investors’ viewpoints, noting that Apple is later than usual in announcing its fall product launch event, and that Wall Street analysts’ ratings on the company are generally skewed to the buy side.
Still, “I continue to think that Apple is a stock to own, not to trade,” Martins said on Thursday. “The rather sharp correction of the past day and a half is not nearly good enough a reason, in my opinion, to exit an Apple position completely.”
This article was originally published by TheStreet.