Apple's Stock Drops 4% Despite Best Day Since 1998

Apple's stock price dropped 4% on Tuesday, despite the company reporting its best day since 1998. The drop came as a surprise to many investors, who had expected the tech giant to continue its upward trajectory. The company's revenue for the June quarter was predicted to be between $41 and $43 billion, which is a significant decrease of 13 to 17 percent from the $49 billion it earned in the same period the previous year. This weak guidance was a major contributor to the stock price drop.

The drop in Apple's stock price can be attributed to several factors. Firstly, the company's revenue for the June quarter was predicted to be between $41 and $43 billion, which is a significant decrease of 13 to 17 percent from the $49 billion it earned in the same period the previous year. This weak guidance was a major contributor to the stock price drop. Additionally, Apple's stock price had been on a downward trend, flirting with correction territory, which is usually defined as a 10% drop from all-time highs. apple stock was about 9% below the July 31 peak, a record high that coincidentally happened moments before the company's most recent earnings report. This downward trend in stock price, coupled with the weak guidance, contributed to the 4% drop in stock price.

The broader market trends and investor sentiment also played a role in Apple's stock price drop. The markets, including stocks and beyond, have been heavily influenced by inflation and monetary policy. Despite a bullish day on that front, as the Fed maintained interest rates steady, the broader market trends and investor sentiment were still cautious. This caution was reflected in Apple's stock price drop, as investors were wary of the company's weak guidance and the downward trend in its stock price.



Apple's recent performance can be compared to its historical stock price trends to gain insights into the company's long-term growth prospects. As of April 10, 2025, Apple's stock price is $189.91, which is a 26.32% increase from the average target price of $239.89 predicted by 31 analysts with 12-month price forecasts. This indicates that analysts are optimistic about Apple's future performance, despite the recent negative performance of the Magnificent Seven stocks in the first three months of 2025.

Historically, Apple has shown strong growth in revenue and earnings per share (EPS). For example, in fiscal 2024, Apple reported quarterly revenue of $94.9 billion, up 6% year over year, and quarterly diluted earnings per share of $0.97. This growth is consistent with Apple's historical performance, as the company has consistently increased its revenue and EPS over the years. For instance, in fiscal 2023, Apple's revenue was $391.04 billion, and in fiscal 2024, it increased to $417.60 billion, a 6.79% increase. Similarly, Apple's EPS increased from $6.08 in fiscal 2023 to $7.46 in fiscal 2024, a 22.78% increase.

However, Apple's recent performance has been affected by external factors such as President Donald Trump's announcement of broad tariffs on all imported goods, which has wiped out trillions in stock market value. This has led to a decrease in Apple's market capitalization, which was $3.29 trillion in June 2024 and $2.59 trillion as of April 10, 2025. Despite this, Apple remains the leading tech company by market capitalization globally, with a market cap of $3.62 trillion as of March 3, 2025.

In conclusion, Apple's recent performance, while affected by external factors, is consistent with its historical stock price trends and long-term growth prospects. The company's strong revenue and EPS growth, as well as its leading market capitalization, indicate that Apple is well-positioned for continued growth in the future. However, investors should be aware of the potential impact of external factors such as tariffs and trade rifts on Apple's performance.