Key points
- Apple has been inundated with bad news in 2024 and distracted by regulatory violations, including a lawsuit recently filed by the U.S. Department of Justice over alleged monopolistic practices by Apple in the smartphone industry.
- Apple shares are trading down 10.5% year to date versus the S&P 500’s year-to-date gain of 9.66%.
- Apple’s talks with Google about licensing its Gemini AI technology on iPhones have pulled Apple shares out of the grave from a yearly low of $168. 49.
- 5 stocks we like more than Apple
While Apple Inc. NASDAQ:AAPL is a giant in the computing and technology industry, it is largely absent during the artificial intelligence (AI) frenzy. Most of the headlines these days are about heavy fines imposed by governments for anti-competitive practices. Although Siri was one of the first mainstream virtual assistants, it has lagged behind when it comes to AI improvements.
That is until recently, when rumors spread about the potential licensing deal with Alphabet Inc. NASDAQ:GOOGL for its Gemini AI technology after talks with Microsoft Co. NASDAQ:MSFT ChatGPT technology has failed. There are also rumors about usage Get Started Inc. NASDAQ: BIDU Earnie AI in its Chinese iPhones. The recent AI rumors have given new life to his stock which has finally hit rock bottom.
Apple accused of anti-competitive practices
Many details about Apple’s alleged anticompetitive practices have made headlines in 2024. Apple has been involved in several ongoing lawsuits. Apple was fined $2 billion in 2021 by the European Commission for anticompetitive practices in its App Store. They found that Apple had unfairly restricted music streaming services such as Spotify Technology SA NYSE: POINT from competing with its Apple Music streaming service. There’s also a growing movement advocating for right-to-repair laws to force Apple to make it easier for repair shops to fix iPhones, which has hurt Apple’s services revenue.
Epic battle with Apple
Epic Games is still fighting with Apple over App Store fees and restrictions and is expected to be taken to court in 2024. Epic Games revealed that Apple collects a 30% commission on in-app purchases and microtransactions, similarly to Google Play. shop. Epic Games bypassed the App Store and offered direct app downloads through its service. However, Apple requires that all app downloads on iPhone and iPad go through its App Store. Epic argues that the App Store’s 30% fees are excessive and stifle competition, and that iOS ecosystem requirements give Apple too much control. They’re pushing for the ability to sideload apps, meaning apps can be downloaded outside of the App Store.
US Department of Justice vs. Apple
The US Department of Justice has filed an antitrust lawsuit against Apple over its iPhone monopoly. Apple is alleged to have illegally created a smartphone monopoly that shuts out competitors, keeps prices high and stifles innovation. Apple’s lack of NFC access to 3rd party banking apps and 30% Apple tax violate antitrust statutes. He claims that Apple has stifled the entire industry it helped revolutionize. Analysts fear that Apple will be forced to change its business practices, which could impact its revenue model and force the company to incur heavy fines. This is causing AAPL shares to be down 10.5% year-to-date (YTD) versus the S&P 500’s year-to-date performance of 9.66%.
Will Halo AI be able to save Apple shares?
Technology companies are aware of the halo effect of artificial intelligence. Companies that have adopted AI and integrated it into their products, services and headlines soon feel the halo effect of AI as stock prices rise. The AI rumors helped Apple shares rebound from year-to-date lows of $168.49. So far, Apple hasn’t had a good year in 2024, as rumors indicate that Apple has scrapped plans to launch an Apple EV.
Aside from Vision Pro, Apple has been criticized for its lack of innovation and new products, allowing competitors like Samsung Electronics Co. Ltd. OTCMKTS: SSNLF to overcome it. The market awaits any updates on Apple’s foray into artificial intelligence, as it is the only catalyst that can save its stock. Apple is expected to report earnings at the end of April 2024.
Apple analyst ratings and price targets I’m on MarketBeat. The titles of Apple’s competitors and competitors can be found with MarketBeat Stock Screener.
Daily pattern of the descending triangle
The daily candlestick chart on AAPL illustrates a descending triangle pattern. The descending trend line started at $196.02 on January 24, 2024. The stock fell to a low of $168.49 on March 7, 2024. The daily market structure (MSL) low triggered the bounce up to $ 173.70 as shares rejected the descending trend line, pushing AAPL back into the triangle range. The daily relative strength index (RSI) is trying to bounce from the 40 band. The pullback support levels are at $168.49, $161.94, $154.15, and $150.83.
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