Apple Stock Plummets Amid Component Shortage Concerns

Apple's stock price plummeted by 7.35% on Monday, August 3, marking its worst daily decline in over a year.

The decline came despite the company reporting a 16% increase in fiscal third-quarter revenue to $109.4 billion and earnings per share (EPS) rising to $2.02 from $1.57, beating Wall Street's consensus of $1.89.

However, Apple forecasted fourth-quarter revenue growth of 9-11%, which fell short of analyst expectations of $114.9 billion, implying roughly $113 billion in sales.

During the earnings call, CEO Tim Cook attributed the cautious outlook to component shortages, particularly in memory chips, which will continue to limit production across the iPhone, Mac, and iPad lineups throughout the September quarter.