Apple reported fiscal fourth-quarter results on November 2, 2026 that topped estimates: revenue of $114.48 billion against a $113.39 billion consensus, and EPS of $2.10 versus $1.99 expected.

Revenue rose 12% year over year, and the company guided December-quarter revenue growth of 7% to 10%, above the 6.1% analysts expected.

Yet the stock, which initially rose 0.5% after hours to $340.00, reversed sharply and closed the extended session at $328.81, down 2.81%, erasing roughly $139 billion in value on 24/7 Wall St.'s math.

The declines came within the options market's expected move of roughly ±4.25%, so the reaction was notable for its direction, not an unusually severe shock.

The sell-off accelerated during John Ternus's first earnings call as Apple's chief executive, when he warned: "What we're seeing with memory pricing right now is unprecedented." 24/7 Wall St. calculates that at 7:59 p.m.

ET, with shares at $329.03 and down 2.75%, the paper loss already stood near $136 billion, and the session's $323.33 low at one point implied about $219 billion before buyers clawed part of it back.

CFO Kevan Parekh said that once tariff refunds are removed, higher memory costs account for most of the drop in gross margin guidance to 45% to 46% for the December quarter, from 47.9% reported.

Ternus added that memory pricing is expected to keep rising beyond the December quarter, meaning the cost squeeze outlasts this guide.

investingLive frames the reaction as investors looking past strong iPhone sales to ask how much of the growth becomes future profit.

Because every iPhone, Mac and iPad uses DRAM and NAND flash, memory costs hit all Apple hardware, and 24/7 Wall St. notes manufacturing purchase obligations rose $33 billion from June to September while inventories reached $14.54 billion, up 154.3% year over year — though it says the claim that this is mostly memory comes from media reports, not the filing.

Apple also guided Services growth of 8% to 9%, below the roughly 10.7% analysts expected, removing the high-margin cushion that usually offsets hardware cost swings.

The company has already raised Mac and iPad prices in June and iPhone prices in September, and Parekh says it is too early to assess any demand elasticity impact.

investingLive's simplified Earnings Mood Score stood at 4/10 entering the session — cautious, defensive and slightly worsening — with big names like Apple, Palantir, Alphabet and Intel driving the pressure, and it flags whether Apple and Palantir recover their initial losses in the November 3 regular session as the key near-term test.

24/7 Wall St. offers three markers: whether the stock closes above $328.81 on November 3, what the annual filing published that day shows on purchase obligations, and whether December-quarter gross margin lands inside the 45% to 46% guide when results arrive in late January 2027.

The underlying risk is elasticity: if higher prices cut holiday unit sales, the margin case and the demand case weaken at the same time. Apple has risen more than 24% in 2026, and the business still shows demand exceeding supply.