Apple Stock Slumps on Weak Guidance Amid Supply Chain Constraints

Apple's stock took a sharp hit on July 31 after the company announced stronger-than-expected third-quarter earnings, but fell short of investor expectations with its guidance for the fiscal fourth quarter. The iPhone maker reported revenue of $109.4 billion, up 16 percent year-over-year and above analyst estimates of $108.65 billion.

Iphone sales drove the quarter's strength, rising 22 percent to $54.3 billion, while Mac revenue jumped 29 percent to $10.35 billion, surpassing expectations. However, services revenue fell short of the $31.22 billion analyst estimate, reaching $30.74 billion.

Despite the earnings beat, Apple's stock declined as much as 9.44 percent during Friday's trading, marking its worst single-day performance in over a year. The decline occurred even as the broader market gained 0.56 percent.