Apple’s disappointing earnings report has put the iPhone maker’s $1 trillion market value at risk.
A revenue forecast that fell short of the average analyst estimate at the midpoint and weaker-than-expected iPhone sales sent the stock tumbling in extended trading. Apple’s disclosure that it will stop reporting unit sales of iPhones, iPads and Macs extended the decline to as much as 7.7 percent. The slide continued in pre-market trading Friday, with the stock falling 5.8 percent as of 7:15 a.m. in New York.
The results drew a downgrade to neutral from buy by Bank of America Merrill Lynch analyst Wamsi Mohan, who wrote “we are incrementally concerned that not all the weakness is captured in the near-term and we are likely to see further negative estimate revisions.”
Apple, which topped the $1 trillion mark on Aug. 2, had a market value of $1.073 trillion at the close of trading on Thursday, according to data compiled by Bloomberg. Based on that value, a 7 percent decline would equate to about $75 billion lost, bringing the value below the 13-digit threshold.