Apple Had the Worst Start of the Year Since the 80s. What's in Store Next?

<p>The
company, boasting the world’s largest capitalization, emerged as a gainer in
the unstable market of 2023. However, the onset of 2024 witnessed a setback,
with Apple stock decreasing for the first four sessions of the year. Let's
delve into the reasons behind this downturn and assess whether it casts doubt
on Apple's future prospects.</p><p>To
comprehend the situation, we can examine Apple's stock movements throughout
2023. Over the span of these 12 months, the shares exhibited a remarkable
growth of over 50%. If you hold them in your portfolio, it’s another reason to
wear a smile more often. Yet, for those seeking alternative investment
options, whether among growth leaders or those experiencing a decline, <a href="https://www.tradingview.com/screener/" target="_blank" rel="follow">the
stock screener</a> is a valuable tool. It allows the formation of stock
lists based on various stats, financials, and technicals. </p><p>It is
interesting that such a great result is still below the average of the FAANG
group. The substantial impact of AI advancements is evident here; however,
Apple is actively participating in this race.</p><p>However,
the beginning of the year witnessed a rare event as <a href="https://www.tradingview.com/symbols/NASDAQ-AAPL/" target="_blank" rel="follow">Apple stock declined</a> in four consecutive sessions, a feat
not seen since 1982.</p><p>The
primary catalyst dampening investor spirits post-Christmas was the media
reports suggesting that the Department of Justice is <a href="https://www.nytimes.com/2024/01/05/technology/antitrust-apple-lawsuit-us.html#:~:text=Apple%3A%20The%20Justice%20Department%20appears,the%20first%20half%20of%202024." target="_blank" rel="follow">concluding its investigation</a> into the tech
company. Apple may face allegations of engaging in anticompetitive practices to
safeguard its dominance in the iPhone market. Simultaneously, Apple stock faced
pressure due to concerns about potentially weaker-than-expected sales of iPhones
and Macs, especially in China.</p><p>Yet, the
probability and influence of these factors might be exaggerated. News about
investigations against tech giants often makes headlines but might only have a
significant impact in the very long term. Similarly, the situation with sales
might not be straightforward, as weaker sales in one region could be offset by
stronger sales elsewhere or an increase in the average price. Apple has
demonstrated its ability to generate profits even in challenging conditions.</p><p>While
Apple stock still maintains a "Buy" rating from analysts, the current
target is not particularly impressive, suggesting a potential 7% increase over
the next 12 months. In other words, Apple remains a company deserving of
attention, but there may be other tech giants, such as Nvidia, with greater
potential.</p><p>Ultimately,
remember that your independent analysis is crucial in deciding which stocks to
add to or remove from your portfolio.</p>

This article was written by FL Contributors at www.forexlive.com.