The Apple logo on a store in San Francisco, California, U.S., on Monday, April 26, 2021. Apple Inc. is increasing its U.S. investments by 20% over the next five years, allocating $430 billion to develop next-generation silicon and spur 5G wireless innovation across nine U.S. states, after outstripping its growth expectations during the pandemic. Photographer: Bloomberg/Bloomberg Apple ended Thursday’s session with a market capitalization of about $2.52 trillion, and the postmarket drop represents a loss of about $126.1 billion in market value, based on outstanding shares at the close. Amazon closed with a value of about $1.75 trillion, and the post-earnings drop of 5% would erase more than $87 billion from its valuation.
Both stocks pared some of their initial decline, with Apple trading 3.6% lower at 6:30 p.m. in New York, while Amazon fell 3.7%.
The selling in the tech heavyweights overshadowed what had been a strong earnings period for the technology sector. Earlier this week, Alphabet Inc. and Microsoft Corp. both rose more than 4% after results beat expectations.
Apple and Amazon are the second and third biggest companies in the S&P 500 behind Microsoft Corp., accounting for almost 10% of the index by weighting.
Read more: Microsoft Narrows Gap on Apple for World’s Largest Market Value
Amazon warned investors that it could have sales of up to $140 billion in the busy holiday quarter without making a nickel in profit. Meanwhile, Apple’s Chief Executive Officer Tim Cook said on a conference call that the supply constraints were worse than expected last quarter and cost it about $6 billion.
“Amazon.com’s weaker 4Q guidance, with the high-end of its range falling below Bloomberg consensus, suggests the company may not be immune to supply-chain troubles pervading the retail industry,” Bloomberg Intelligence analyst Poonam Goyal wrote in a note.
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