Tech Giant on Shaky Ground: Apple’s Turbulent Start to 2025 Raises Concerns
Apple Inc. (NASDAQ:AAPL) is off to a rocky start in 2025, with its shares plummeting 11% since the beginning of the year. This sharp decline has made it the weakest performer among the ‘Magnificent 7’ group, a stark contrast to the S&P 500’s 4% gain, which has reached a new record high.
A Critical Technical Indicator Looms
The tech behemoth’s stock is now approaching a critical level that could signal further losses if breached. The 200-day moving average, a key technical indicator, is seen by many traders as a long-term support level. According to Todd Sohn, an ETF and technical strategist at Strategas Securities LLC, “When you get names starting to flirt with it or start to break below it, you kind of lose confidence that the uptrend of that name is still intact.”
Market Value Overtaken by Nvidia
Apple’s decline has led to Nvidia overtaking it in market value, a significant shift in the tech landscape. Despite this, the S&P 500 has continued to rally, but if other major tech stocks start to decline, it could signal trouble for the bull market, now in its third year.
Earnings Release Looms
Apple is scheduled to release its quarterly earnings on January 30, an event that investors are closely watching. Despite the stock’s current performance, analysts remain optimistic about Apple’s future, citing growth potential in services and wearables.
A “Massive Investment” in the US
Earlier this week, President Donald Trump announced that Apple was planning a “massive investment” in the United States, part of his initiative to accelerate major corporate investments in the U.S.
Price Action and Investment Opportunities
Apple shares ended 0.39% lower on Friday, with a year-to-date loss of 8.64%. Meanwhile, certain private market real estate investments are offering retail investors high-yield opportunities, such as Arrived Home’s Private Credit Fund, which has historically paid an annualized dividend yield of 8.1%.
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