Apple gets brui$ed: Shares plunge 7% amid ‘slow growth’ warning

By the Editorial Team · Saturday, August 1, 2026

Apple's shares dropped 7% after its quarterly earnings beat expectations but the company issued a cautious revenue forecast and cited supply challenges impacting profit margins. This decline erased over $350 billion in market value just days before CEO Tim Cook steps down, raising investor focus on whether new leadership can address ongoing supply issues and sustain growth.

Apple Inc. experienced a significant stock decline on Friday, with shares falling 7% in its steepest one-day drop since April 2025. The technology giant’s quarterly earnings report, while strong, was overshadowed by a cautious outlook for the upcoming quarter, driven by supply challenges and slowing growth projections.

Apple reported fiscal third-quarter revenue of $109.4 billion and earnings of $2.02 per share, surpassing analyst expectations. iPhone sales hit a record $54.25 billion, yet weaker performances in iPad and services segments raised concerns about decelerating momentum. Despite the solid results, investors reacted negatively to the company’s guidance for the September quarter, which projected revenue growth between 9% and 11%, below Wall Street estimates of approximately 12%.

Chief Executive Officer Tim Cook attributed the pressure on profit margins to a "100-year flood" in memory chip pricing, a factor that has significantly increased costs for Apple. He also acknowledged that the company had underestimated demand for its iPhone and Mac products, resulting in supply shortages. Cook clarified that these shortages were mainly due to unexpectedly strong consumer demand rather than broader disruptions in the global supply chain.

The selloff erased more than $350 billion in market value, wiping out Apple’s gains earlier in the week that had pushed its market capitalization briefly above the $5 trillion mark. This earnings call marks Cook’s last before John Ternus takes over as CEO on September 1. Investors will closely watch whether Apple can resolve supply constraints and restore sales growth under new leadership.

In contrast, shares of Amazon surged 15% following the e-commerce company’s strong quarterly performance. Amazon reported revenue of $200.61 billion and earnings of $5.75 per share, beating analyst forecasts. Growth in Amazon Web Services (AWS) accelerated, and positive remarks about artificial intelligence initiatives contributed to optimistic investor sentiment, triggering a series of price-target increases from analysts.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.