Apple stock has been hammered today, dropping almost 6 percent (or $25/share), as investors are taking cues from an important Apple component supplier, Cirrus Logic, which forecast lower-than-expected sales of its chips for the iPhone and iPad in the coming quarter.
That means that Exxon Mobile, with a $385.7 billion-dollar market capitalization, is currently the most valuable company in the world.
Cirrus Logic, however, did put a positive spin on the situation, saying that the decrease was due to a key customer’s migration to a new component. “A key customer,” investors believe, is code for Apple, and the component decreases are evidence that iPad shipments dropped in recent months.
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The new drop means that Apple is now more than $300/share down from its high point in September 2012, when the company was worth over $650 billion. And that it has now dropped an absolutely massive $250 billion in value since then — the equivalent of an entire Google or a Microsoft.
Apple’s quarterly results are coming Tuesday, and the company better hope Tim Cook has something that impresses investors. His last effort, a Wall Street “fireside chat” at the Goldman Sachs Technology and Internet conference in February, fell flat, with Apple stock dropping a further $11/share, or 2.3 percent.
Because if not, the kind of investor revolt that we saw in February led by Greenlight Capital could become the norm, not the exception.
Even if level-headed investors say Apple’s fundamentals are all good.
Image credit: Google Finance