Apple stock dropped 5% despite strong Q1 results, concerns over tariffs and competition

From Nasdaq: 2025-02-03 16:54:00

Apple’s AAPL stock has dropped nearly 5% despite reporting strong Q1 results, hitting an all-time high of $124.3 billion in sales with earnings of $2.40 per share. Concerns over tariffs and competition from Chinese AI company DeepSeek have fueled the selloff, raising questions about Apple’s future in China.

While Apple’s revenue in Greater China fell 11% in Q1 due to regulatory challenges, the company remains optimistic about international expansion. Offering loose guidance for Q2, Apple projects low to mid-single digit revenue growth, with annual sales expected to increase 4% in fiscal 2025 and 8% in FY26. EPS is forecasted to grow 8% this year.

With potential buying opportunities ahead, Apple’s global market dominance and growth trajectory make it a solid long-term investment. Despite challenges from DeepSeek and tariff concerns, Apple’s position as a tech giant remains strong, with analysts projecting continued growth in revenue and earnings.



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