On August 3rd, Apple released the most highly-anticipated report for the earnings season, viewed as a bellwether for the fortunes of recently raging FAANG contingent. Apple slightly exceeded Wall Street's expectations on revenues, and beat handily on EPS. But despite an apparent upward surprise, investors fled, bidding down its shares by over 4.8% by market close on August 4 to $182. That move that erased $130 billion in market cap, more than the total valuation of all but around 50 U.S. companies.
Funds and folks seem to be recognizing that America's most valuable enterprise, and a stock that before the new slump rallied 50% in 2023, is seriously, dangerously overpriced. The new figures spotlight that the stalwart valued for years of rapid growth to come is—at best—flattening. The other scenario: that it's trending back toward the (still impressive) profits it posted before the pandemic.
