Apple slides 10% as growth outlook fails to justify rich valuation
AAPL•Shares fall on weak outlook
Apple's AAPL.O shares were down about 10% on Friday, signaling a sharp selloff as investors reacted to the company's results and outlook.
If losses hold, AAPL is headed for its worst trading day since the pandemic-driven selloff in March 2020, erasing nearly $500 billion in market value.
Guidance misses Wall Street expectations
The company forecast September-quarter revenue growth of 9%-11%, below Wall Street's 12% target, per LSEG data, with CEO Tim Cook citing "very significant" supply constraints.
The weak forecast overshadows results for the June-quarter that beat market expectations, driven by strong iPhone and Mac sales.
The stock recently traded at 35 times expected earnings, versus its five-year average of 28, per LSEG data, suggesting shares may be overvalued.
