Apple Stock Dropped 30% From Its High. History Says This Will Happen Next.
From Nasdaq: 2025-04-15 03:55:00
In 2024, Apple stock surged 30% to $259 per share due to strong services sales and AI excitement. However, by early April 2025, the stock plummeted 33% to $172 per share amid economic uncertainty and trade tensions. President Trump’s proposed tariffs could affect Apple, which makes most iPhones in China.
Historically, Apple stock has rebounded strongly after a 30% decline, returning an average of 80%. Previous drawdowns in 2015, 2018, 2020, and 2022 resulted in significant gains the following year. Investors should note the pattern and consider the potential for a similar recovery in 2026, with a possible 51% upside from current levels.
Uncertainty looms for Apple due to Trump’s proposed tariffs, affecting the company’s production in China and other countries. The delay in tariffs on imports from India, Japan, and others adds to the unpredictability. Additionally, Apple Intelligence features have not met expectations, leading to consumer disappointment and delays in updates.
Despite challenges, Wall Street predicts an 11% annual earnings growth for Apple through 2026. The current valuation at 30 times earnings may seem high given trade policy uncertainties. Patient investors could consider buying a small position now, as analysts may underestimate Apple’s potential for a rebound. Consider other top stock picks for potential high returns in the future.
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