Apple's Stock: A Rocky Start to 2025, Testing Key Technical Levels

Apple Inc. (NASDAQ: AAPL), the world's most valuable publicly-listed company, has had a rocky start to 2025. The tech giant's stock has been on a downward trajectory since the beginning of the year, with shares declining for five consecutive sessions, a feat not seen since 1982. This downturn comes amidst reports that the Justice Department is moving closer to filing an antitrust case against Apple, which has also faced dwindling iPhone sales and patent disputes.



The primary catalyst dampening investor spirits post-Christmas was the media reports suggesting that the Department of Justice is concluding its investigation 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.

However, 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.



Despite fluctuating between gains and losses in Friday's trading session, the losses incurred mark Apple's most significant market value destruction at the start of any year on record. Analysts are grappling with the rarity of two consecutive downgrades, a phenomenon that has not been witnessed before an earnings report in the company's history. "Investors realize how rare it is to have two people go negative," managing partner of Deepwater Asset Management, Gene Munster, told Fortune.

The rollercoaster ride continues, with Apple's stock price now trading below its 50-day and 200-day moving averages, which could indicate a potential downtrend in the short term. However, if the stock price crosses above these moving averages, it could signal a bullish trend and potentially drive the stock price higher in the long term.

Apple's current situation is a test of its resilience and investors' confidence in the company's ability to navigate challenges and maintain its market dominance. As the company faces regulatory and legal hurdles, as well as potential sales slowdowns, it is crucial for investors to stay informed and make strategic decisions based on the latest developments.

Rating: Hold, with a cautious outlook.