Apple Lost $158 Billion In A Day, Biggest Ever Loss By A Company In A Day
Apple¡¯s market capitalization slipped a whopping $180 billion in a day, on September 4, amounting to the largest one-day loss a company has ever experienced.
While people and businesses around the world are suffering losses due to the novel coronavirus, some tech companies like Tesla and Apple have been having the time of their lives with Apple becoming the most valuable company in the world at a $2 trillion valuation.
However, a few days ago all this came crashing down stripping Apple from this status.
Reuters
Apple¡¯s market capitalization slipped a whopping $180 billion in a day, on September 4, amounting to the largest one-day loss a company has ever experienced, according to finance publication Barron. What¡¯s worse is that the very next day, Apple¡¯s shares came crashing down even more, by nearly five percent, that stripped the Cupertino giant off its $2 trillion valuation.
The last time a company suffered such extreme losses in the stock market was with the car manufacturer Volkswagen in the year 2008 when it cost the company a whopping $153 billion dollars. In Apple¡¯s case, the reason behind the drop is sell-off by shareholders.
Does this mean Apple is in trouble?
The answer to that question is absolutely not. Even now the stock prices of Apple¡¯s shares are twice as high as they were in the month of March.
Apple had been having a smooth run this year while businesses around the world have been suffering catastrophic losses. Even with COVID-19 pandemic shutting Apple¡¯s physical stores, it reported amazing business in its third-quarter earnings -- $59.7 billion in revenue with an 11 percent increase from a year ago.
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Apple is yet to announce the much-awaited iPhones for the year -- the iPhone 12 which are going to bring back a compact form-factor along with a 5G connectivity.
Apple has been striving hard to bring its costs down and reports have hinted that the device maker will be compromising on battery while also eliminating charging bricks from the phones to make the phones affordable. Along with the iPhone launch, Apple is also expected to unveil new versions of iPad and Apple Watch.
