Apple is facing challenges in the stock market as 2025 unfolds. Apple’s stock has declined 11% since the start of 2025 through Friday’s close. This performance makes Apple the worst performer among the Magnificent Seven tech stocks. In contrast, the S&P 500 has gained approximately 3.7% year-to-date, reaching new record highs. Apple’s current slump marks its poorest year-to-date showing since 2008.
The stock is approaching its 200-day moving average.
Apple was recently the world’s most valuable company in terms of market capitalization, but Nvidia has now overtaken Apple in terms of market value during this decline.
The broader market has remained resilient despite Apple’s struggles.
Factors could be weak
- iPhone sales in China, with estimates suggesting an 18.2% decline in the December quarter.
- Concerns about the company’s AI initiatives and their ability to drive growth.
- Analyst downgrades and reduced iPhone sales forecasts for fiscal years 2025 and 2026.
Apple is set to report quarterly earnings on January 30, 2025, after market close. Wall Street expects earnings per share of $2.35 on revenue of $124.2 billion. This earnings report could greatly influence the stock’s direction.
If Apple’s stock drops below the 200-day moving average, it could signal more trouble ahead. However, if Apple’s upcoming financial report exceeds expectations, it might help turn things around.
Even companies like Apple can experience ups and downs in the stock market. We’d suggest avoid making hasty decisions based on short-term fluctuations.
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