Apple Inc. has seen a significant downturn in its stock value, dropping 18% from its record high in December, with its market capitalization shrinking by more than $700 billion. The tech giant’s shares, which closed at an all-time high of $259 on December 26, have fallen sharply, bringing Apple’s market cap down to approximately $3.2 trillion as of Tuesday midday.
Market Pressure and AI Challenges
Apple’s stock decline comes amid a broader downturn in Big Tech stocks, as investors reassess expectations for artificial intelligence and grapple with macroeconomic uncertainty. Last week alone, Apple shares plunged 11%, marking the company’s worst weekly loss since November 2022.
A key factor behind the decline is Apple’s AI strategy, which has shown signs of instability. Earlier this month, the company announced a delay in launching an AI-upgraded Siri, pushing the release to later this year due to longer-than-expected development time. This setback has raised investor concerns over Apple’s ability to keep pace with competitors in the AI space.
Revised Analyst Projections
Following the Siri delay, analysts at Morgan Stanley have lowered their price target on Apple’s stock from $275 to $252 and revised their iPhone sales forecasts downward. The firm now expects Apple to ship 228 million iPhones in 2025 and 237.5 million in 2026, a reduction from prior estimates of 230 million and 255 million, respectively.
Despite the recent decline, Apple remains one of the most valuable companies in the world, and its performance in the coming months will likely depend on its ability to deliver AI innovations and navigate macroeconomic challenges.
Stay tuned to DC Brief for further updates on this story and other technology developments.
