Apple Shares Tumble: Here’s Why the Tech Giant Is Bleeding Today
Wall Street's golden child hits a speed bump.
Apple's stock took a nosedive in early trading—here's what's rattling investors.
The China factor: Supply chain whispers and slowing iPhone demand in Beijing sent shockwaves through Cupertino's balance sheet.
Innovation stagnation: Critics pile on as Apple's last three product launches failed to move the needle (or the market).
Regulatory headwinds: Fresh antitrust probes in the EU and US have analysts trimming price targets.
Meanwhile, hedge funds quietly rotate into AI plays—because nothing says 'growth' like betting on unproven algorithms. Classic Wall Street.
A strong quarter
Apple reported strong quarterly results, with earnings per share of $1.57 and revenue over $94 billion, easily topping Wall Street analyst expectations. In fact, year-over-year revenue growth of 10% is the highest the company has seen since 2021. iPhone sales surpassed $44.5 billion, compared to consensus estimates of roughly $89.5 billion. Apple also had $800 million in costs in the quarter due to tariffs.
Image source: Getty Images.
"It was an exceptional quarter by any measure," Apple's CEO Tim Cook told CNBC, adding that the company did see a boost from consumers trying to get ahead of tariffs.
Looking ahead, Apple's management team guided for mid- to high-single-digit annual revenue growth in the company's fourth fiscal quarter. Services growth will rival the same 13% growth the company saw in the third quarter, while Apple expects gross margins to fall in the 46% to 47% range, inclusive of associated tariff costs.
Perhaps offset by economic events
It's possible that the strong quarter is being offset by President Donald Trump's renewed focus on tariffs or by the weak jobs data this morning, either of which could lead to the consumer eventually slowing down. I also think investors may want to know more about Apple's plans for artificial intelligence.
Ultimately, I think the strong quarter bolsters Apple's case as a buy, but it's still not the most exciting stock in the Magnificent Seven right now.
