Despite the good reports: Apple falls on Wall Street

Apple's stock is falling sharply on Wall Street despite strong third-quarter reports, due to investor concerns over a slowdown in profitability during the holiday quarter, rising memory chip costs, and investments in AI.

Apple's stock is falling sharply on Wall Street today (Tuesday), a day after the release of its third-quarter 2026 results. Although the company beat analyst expectations – revenue of $114.5 billion, a 12% surge, and earnings per share of $2.10 – investors are worried about the outlook for the holiday quarter. Apple forecasts record revenue but a gross margin of 45%-46%, relatively low for the brand. The reasons: rising memory chip costs and massive investments in artificial intelligence. The growth rate in the services segment is also expected to slow to 8%-9%. The stock, which has risen 25% since the start of the year and trades at a P/E multiple of 40, is sensitive to any sign of margin erosion.