The risk of a slowing global economy is taking its toll on the world’s largest market cap company. Apple’s market cap fell below $2 trillion for the first time since May 2022, a drop of more than $1 trillion in a year. In August 2020, Apple’s market capitalization reached $2 trillion, and by January 2022, it had surpassed $3 trillion. Since then, Apple’s stock price has been declining, falling nearly 28% in the last year.
At Tuesday’s market closing, Apple’s share price dropped $3.74% to $125.07, a 52-week low, giving Apple Inc. a $1.99 trillion market value.
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Apple Inc. is currently the world’s largest market capitalization company listed on the US stock market exchanges. As of January 3, 2023, there are three mega-cap companies with a market capitalization of more than $1 trillion. Apple Inc. has a market capitalization of 1984.73 billion dollars, Microsoft Corporation has a market capitalization of 1794.80 billion dollars, and Alphabet Inc. has a market capitalization of 1159.43 billion dollars. Microsoft previously reached the $2 trillion mark before retreating in 2022.
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Apple’s stock decline was largely in line with the historic tech selloff, though falling demand for the iPhone 14 and manufacturing headwinds in China also weighed on the stock. Three major recent developments may have triggered the recent fall in Apple stock as the stock is down by 11% in 1-month. According to a recent analysis from supply chain analyst Trendforce, Apple’s iPhone shipments decreased 22% in the three months ending in December. Also, according to Nikkei, Apple has instructed suppliers to produce fewer parts for items including AirPods, Apple Watch, and MacBook computers. Reportedly, Apple stock has been downgraded to “neutral” from “outperform” by some analysts.