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Apple Just Lost The Most Money In History During A Single Day

by : Emma Rosemurgey on : 07 Sep 2020 15:28
Apple Just Lost The Most Money In History During A Single DayApple Just Lost The Most Money In History During A Single DayPA Images

Apple lost an eyewatering $180 billion yesterday, September 6, the biggest loss of any company in a single day.

While to most of us that sounds like an astronomical loss, the company is still worth an unfathomable $2 trillion, so it’s unlikely that anyone will be losing sleep over the dip.

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It began when Apple stocks slid by 8% on Thursday, September 3, which ultimately equated to $180 billion lost for the iPhone makers. This was the biggest percentage drop for Apple stock since March 16, when it fell by 12.9%.

Apple CEO Tim CookApple CEO Tim CookPA Images

The stock market is a fickle business, and while many parts of the world are facing a deep economic recession as a result of the pandemic, some of the world’s biggest companies have continued to soar in value.

There’s no getting away from the fact that Amazon, Facebook, Apple and Microsoft completely dominate the stocks and shares market in ways that are difficult to comprehend.

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Despite taking a huge hit yesterday, Apple’s stock is still by 65% at market close from January of this year and up by 127% from this time last year, Barron’s reports.

iPhone AppleiPhone ApplePixabay

Meanwhile, Microsoft is larger than Germany’s market index (DAX), Amazon is bigger than France’s and Apple is larger than the UK’s. So, alongside Facebook, the super companies make up almost a quarter of the S&P 500 – a huge increase from the 11% they made up just two years ago.

Some people have argued that this magnificent growth in the tech market proves that we’re in the midst of an unsustainable tech bubble. Derek Thompson, of the Atlantic, wrote that we’re currently in a deflationary period for companies that had billed themselves as technology companies valuations, despite actually being more fitting to other fields, such as real estate.

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This means that many unprofitable and unsustainable companies went bust when the public markets went all in.

So, he explains, even when super companies like Apple’s publicly traded stocks are falling, overall collapses in value have happened much earlier down the line, and it is private investors who are eating the losses, not public investors. To simplify it enormously, there’s a lot more going on behind the scenes in terms of value loss and gain, before any of that information ever makes it public.

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Emma Rosemurgey

Emma Rosemurgey is an NCTJ trained Journalist who started her career by producing The Royal Rosemurgey newspaper in 2004, which kept her family up to date with the goings on of her sleepy north east village. She graduated from the University of Central Lancashire in Preston and started her career in regional newspapers before joining Tyla (formerly Pretty 52) in 2017, and progressing onto UNILAD in 2019.

Topics: Technology, Amazon, Apple, Facebook, Microsoft, Now

Credits

Barron's and 1 other
  1. Barron's

    Apple Lost $180 Billion In Market Value on Thursday. It’s the Biggest Loss For Any Company Ever.

  2. Atlantic

    The Not-Com Bubble Is Popping