Apple Stock Slumps Despite Record Revenue and Strong Earnings

Apple's stock price has been under heavy selling pressure despite the company delivering better-than-expected fiscal third-quarter results. The tech giant reported record June quarter revenue of $109.4 billion and earnings per share of $2.02, fueled by strong sales of iPhones and Macs.

However, investors focused on management's softer outlook for the current quarter, citing rising component costs, supply chain constraints, and unfavorable currency effects as weighing on profitability. The company also indicated that revenue growth in the September quarter is likely to slow compared with recent performance.

The latest decline reflects a broader shift in market sentiment, where investors are becoming increasingly selective after the recent earnings season. Companies demonstrating clear returns on AI investments are being rewarded, while those facing higher costs or slower earnings growth are being punished.