Apple stock plunges due to tariff concerns, but potential for recovery with tariff exemptions

From Nasdaq: 2025-04-08 14:00:00

Apple Inc. (AAPL) faces a major market downturn due to concerns over new tariffs targeting key supply chain countries. Shares plummeted 19%, wiping out over $637 billion in market value — the worst performance since 2001.

The tariff dilemma poses a no-win situation for Apple, caught between raising prices and shrinking profits. Analysts worry about the impact on financial health amidst escalating trade tensions, with the stock showing slight gains but remaining cautious.

Despite challenges, Apple’s strong fundamentals provide a silver lining, although overshadowed by tariff risks. The CBOE Apple VIX has surged to levels unseen since 2020, and the stock’s valuation at its lowest in two years, with a potential for further downside.

The biggest issue for Apple remains resolving tariffs. Exemptions could trigger a stock recovery, while an escalating trade war could complicate matters. Investors eyeing Apple-heavy ETFs like IXN, VGT, FTEC, IYW, and XLK as a diversified approach to minimize risks.

Investors concerned about Apple’s valuation correction can explore ETFs for exposure. Key ETF info and top-performing funds can be received via Zacks’ free Fund Newsletter, offering insights and analysis weekly.

If Apple secures tariff exemptions, a relief rally could be triggered, but ongoing trade tensions pose a risk. Investors may consider buying the dip in Apple stock or through Apple-heavy ETFs to navigate the current market uncertainty.



Read more at Nasdaq: Apple Stock Suffers Sharp Selloff: Buy the Dip in ETFs?