Apple Stock Drops Amid Underlying Earnings Concerns

Apple's stock price dropped by 6.3% in a week after the company reported its fiscal Q3 results, despite delivering $109.417 billion in revenue, up 16.36% year over year.

The decline was unexpected, given Apple's strong fundamentals and its position as the world's most profitable consumer hardware and services franchise.

Analysts argue that the market reacted negatively to the underlying report, which showed a softer Services segment and increasing supply chain pressures.

Services growth came in at 12.1% year over year, but missed the $31.2 billion consensus estimate, while operating income grew 26.57%, well ahead of revenue.