Apple stock's 8% dive translated to a loss of
roughly $180 billion in the iPhone maker’s market capitalization today. It’s
the largest one-day loss in value for any company ever, but still leaves Apple
with a market cap of well over $2 trillion. Big numbers are fun.
The previous one-day loss
record was a weird one. Back in October 2008, sports car maker Porsche revealed that it had gained control of a
majority of voting shares in Volkswagen. That set off
a massive short squeeze that propelled Volkswagen shares 82% higher to
briefly make VW the most valuable company in the world—at $348 billion,
meager by today’s standards.
Things normalized a bit the
next day, and VW stock lost 44%, or $153 billion in market value.
In the U.S., the largest
one-day market cap loss before 2020 came from Facebook stock on July 26, 2018, following its earnings
report the prior evening. Facebook’s second-quarter results were fine, with
earnings and sales matching the Wall Street consensus. But following the Cambridge
Analytica scandal and other pressures on the company’s
business model, Facebook warned that its revenue growth and profit margins
would decline significantly over the coming quarters and years.
The stock tumbled 19% the
following day, losing over $119 billion in market value.
A pair of days in March
2020 saw market-cap losses of over $150 billion from Apple and Microsoft stocks.
Apple’s loss today was
larger than the individual market caps of 470 companies in the S&P
500—or the bottom 37 combined. It is the biggest
percentage drop for Apple stock since March 16, when it fell 12.9%.
But, like the rest of tech,
Apple stock is still solidly in the green for practically any timeline.
Adjusted for its recent stock split, today's close of $120.88 is the
lowest since just Aug. 20—10 trading days ago. The stock is still up 65%
since the start of 2020, and up 127% over the past year.
Hard to feel bad about those
returns, even after one rotten day.
No comments:
Post a Comment