From Nasdaq: 2025-06-08 18:00:00

Apple (NASDAQ: AAPL) shares have dropped 18% in 2025, making it one of the worst-performing “Magnificent Seven” stocks. Warren Buffett’s Berkshire Hathaway has sold a significant portion of its Apple shares. The stock is 21% below its peak, with concerns about tariffs and slow AI progress.

Despite its iconic brand and strong financials, Apple faces challenges. Growth has slowed, with net sales up less than 7% from fiscal 2021 to 2024. The company’s delayed entry into AI and the impact of tariffs, especially from China, pose significant threats to future performance.

The stock’s price-to-earnings ratio is 32, with expected EPS growth of 8.8% between fiscal 2024 and 2027. There is no margin of safety for investors, making it a risky buy. The Motley Fool Stock Advisor team has not recommended Apple as one of the top 10 stocks to buy now.

Investors considering Apple should weigh the risks carefully. The Motley Fool Stock Advisor’s top 10 stock picks have historically outperformed the market significantly. Joining Stock Advisor could provide access to potentially high-return opportunities, as seen with past recommendations like Netflix and Nvidia.



Read more at Nasdaq: Down 21%, Should You Buy the Dip on Apple Stock? The Answer Might Surprise You.