Apple slides as supply shortages cloud growth outlook

Apple shares fell nearly 10% on July 31 after the company warned that shortages of key components would weigh on growth, putting the stock on track for its worst day since the March 2020 pandemic selloff. The selloff threatened to erase nearly $500 billion from Apple’s market value and return the “most valuable company” title to Nvidia. CEO Tim Cook, speaking on his final earnings call before handing leadership to John Ternus in September, said the shortages were “very significant” and that Apple had limited options. Apple forecast revenue growth of 9% to 11% this quarter, below Wall Street expectations of about 12%. The services slowdown also concerned investors.