---
title: "Apple and Amazon Stock Dives Set to Erase $200 Billion in Value"
description: "Apple Inc. and Amazon.com Inc.’s late selloff on Thursday on the back of disappointing earnings reports may wipe out more than $200 billion in combined market valuation from the companies when markets open on Friday."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "International Finance"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2021-10-29-apple-and-amazon-stock-dives-set-to-erase-200-billion-in-value/"
published: "2021-10-29T05:51:42"
lang: "en-ZA"
word_count: 348
---

# Apple and Amazon Stock Dives Set to Erase $200 Billion in Value

> Apple Inc. and Amazon.com Inc.’s late selloff on Thursday on the back of disappointing earnings reports may wipe out more than $200 billion in combined market valuation from the companies when markets open on Friday.

By Bloomberg · Published 29 October 2021, 07:51 SAST

## Content

Shares of Apple fell as much as 5% after its [revenue missed expectations](https://www.bloomberg.com/news/articles/2021-10-28/apple-tumbles-after-supply-crunch-hurts-iphone-maker-s-sales), hurt by supply constraints. Amazon dropped by a similar degree after it gave [a revenue forecast](https://www.bloomberg.com/news/articles/2021-10-28/amazon-projects-holiday-sales-that-suggest-pandemic-boom-is-over) that was below consensus estimates and warned that high costs [could wipe out any profit](https://www.bloomberg.com/news/articles/2021-10-28/amazon-warns-high-holiday-costs-risk-wiping-out-any-profit) in its holiday quarter.

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](https://www.bloomberg.com/news/articles/2021-10-27/microsoft-closes-on-apple-in-race-for-world-s-most-valuable-firm)

Amazon [warned](https://www.bloomberg.com/news/articles/2021-10-28/amazon-warns-high-holiday-costs-risk-wiping-out-any-profit) 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.

| For more coverage |
| --- |
| - [Apple Tumbles After Supply Crunch Cuts Sales by $6 Billion](https://www.bloomberg.com/news/articles/2021-10-28/apple-tumbles-after-supply-crunch-hurts-iphone-maker-s-sales) - Apple Supply-Chain Woe May Bite Fiscal 2022 Sales: Intellligence - Apple Suppliers Poised to Fall After Quarterly Revenue Miss - [Amazon Projects Holiday Sales Signaling End to Pandemic Boom](https://www.bloomberg.com/news/articles/2021-10-28/amazon-projects-holiday-sales-that-suggest-pandemic-boom-is-over) - [Amazon Warns High Holiday Costs Risk Wiping Out Any Profit](https://www.bloomberg.com/news/articles/2021-10-28/amazon-projects-holiday-sales-that-suggest-pandemic-boom-is-over) - Amazon’s Not Immune to Supply-Chain Woes: Intelligence |