Apple loses $1 trillion in market value in one year

Date: YCharts;  Chart: Axios Visuals
Date: YCharts; Chart: Axios Visuals

Investors drove Apple’s market value below $2 trillion during the first trading session of 2023, a year after propelling it to become, briefly, the first US company to reach $3 trillion.

What’s happening: Shares of Apple tumbled Tuesday morning by more than 4%, after a Nikkei Asia report reignited worries about demand for the company’s products.

  • According to the report, published Monday, Apple reportedly notified several suppliers to build fewer parts for some of its devices, including AirPods, the Apple Watch and MacBooks.
  • A spokesperson for Apple did not immediately respond to a request for comment.
  • Shares of Apple closed down 3.7%.

Be smart: Investors are in a waiting period ahead of earnings, when details about Apple’s all-important holiday quarter will be released and forecasts will be issued.

The big picture: Apple’s stock rose 34% in 2021 when markets had one of their best years ever — but also as stay at home stocks were on their way down as global economies began to reopen.

  • Rapid inflation and rising interest rates changed consumer moods and overhauled market conditions in 2022, ending Big Tech’s 20-year run of mad growth, Axios’ Scott Rosenberg has written.
  • Apple last year fared better than its Big Tech peers — Meta, Amazon, Alphabet and Netflix — and the Nasdaq 100. Collectively the FAANG stocks lost more than $3 trillion in market cap.

What to watch: Apple investors have also been concerned about the company’s ability to produce enough devices to sell as COVID lockdowns and abrupt policy changes in China impacted supply chains.

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