For years, investors have viewed Apple stock as a potential safe haven during periods of market instability. However, that perception has not held true in the current climate. Late-to-AI Apple has experienced significant declines in recent trading sessions, worsening its year-to-date underperformance as a mounting array of risks overshadows the company’s historically strong positives.
Ryan Vlastelica for Bloomberg News:
While Apple offers steady earnings growth and sits on a mountain of cash, headwinds form a daunting list for would-be bulls: it is heavily exposed to tariff uncertainty and China, its artificial intelligence offerings have repeatedly fizzled, and its lucrative partnership with Google parent Alphabet Inc. is potentially at risk. It trades at a premium to megacap tech peers despite slower revenue growth, suggesting that the haven case is harder to make for Apple.
“People like to park in Apple, but right now the stock is expensive, and not only is growth slow, but the catalysts for growth are absent,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. “It doesn’t seem like AI is doing much for it, the environment is very uncertain, and it is very at risk with tariffs and China… [I]t seems like it is just treading water, and it has been a while since we’ve seen anything truly innovative from it.”
Shares have dropped 13% this year, and are coming off their biggest three-day decline since November 2022, a selloff that took the stock to its lowest close since September. The Nasdaq 100 Index is down 6.7% in 2025, and Apple is responsible for nearly a fifth of that decline, according to data compiled by Bloomberg.
Investors had been optimistic that the iPhone 16, the first to be compatible with AI features, would entice consumers to trade up for the latest model. However, demand has underwhelmed so far, and in the latest example of its struggles with the cutting-edge technology, it is indefinitely delaying the release of its AI-infused Siri digital assistant.
MacDailyNews Take: We thank the overreacting market for this early 2025 gift. More, please! Let’s see sub-$200!!!
This too shall pass.
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Ha. Gotta appreciate the MDN bullish sentiment.
The article fails to mention the stock buyback program, which steadily reduces the number of outstanding shares and is a solid support mechanism long term.
My one hope is that Apple is repurchasing plenty of shares during this devaluation. Most companies can’t easily afford to do that. I don’t know if the lack of A.I. is seriously hurting iPhone and Mac sales, but I think that Wall Street is putting too much emphasis on everything that has to do with A.I. All this talk about autonomous robots and FSD vehicles being so important for mankind just seems a bit overblown. People need jobs, not robots. I’m not concerned about Apple’s stock dropping, as I’m getting my quarterly dividends no matter what. If investors no longer believe in Apple, that’s too bad. I’m not selling simply because Siri might be delayed. Apple is offering some amazing new hardware and if investors don’t realize that, it’s their loss.
we need to remove tump and Tim from office or we will all be on the bread line.
there is more then one way not solve a problem. the workers for the government, no that’s not too large or too many. Regulations and laws didn’t happen in a vacuum. there were people causing harm to others in some form, that’s how you end up with a law or regulation. 330,000,000 plus is the population. 2,200,000 is the government workforce. they are understaffed. Americans are inflating the number because they wrongly count state, county, city workers in the government workforce, not distinguishing between them. for the federal, that means 150 customers to one, 1, employee. any business would hire more employees to handle the customer load. the rich have enough. enough. if you have a billion dollars and you feel broke there is something wrong with you. Tariffs are taxes. best to raise taxes on the rich, because they will make that money back in hours.
☝🏻 Never forget that half of the world is, by definition, below average IQ – the LEFT side of the Bell curve. That’s who Democrats prey upon.
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