Apple Inc.’s market value dropped below $3 trillion after the company’s outlook for the fourth quarter raised concerns about lower demand for its devices. On Friday, the California-based company’s shares fell by 3.6%, resulting in a market capitalization of $2.88 trillion, a decline of over $120 billion.
Apple’s recent report showed declining sales for the third consecutive quarter, and it expects a similar performance in the current period. Due to this mixed report, Rosenblatt Securities downgraded the stock to neutral, highlighting Apple’s current slowdown phase. The uncertainty around the timing and success of new product categories leaves little reason to support the shares, which are trading at high multiples compared to historical values and the overall market.
However, some investors, like Citi, remain optimistic about Apple’s future, placing the company on a 90-day upside catalyst watch ahead of the anticipated release of the iPhone 15 series in September.
Apple had become the first company to reach a $3 trillion valuation in June but has experienced a 42% gain in shares this year, thanks to investor optimism about the potential growth opportunities in artificial intelligence.
