Apple Faces Antitrust Case Threat as Investors Worry, World’s Most Valuable Stock at Risk
Apple Inc. is facing mounting pressures as investors react to the possibility of an antitrust case against the company, putting its long-standing status as the world’s most valuable stock at risk. The technology giant’s shares fell 0.4% on Friday, closing at about $181, after news broke that the Justice Department is closer to filing the case.
This decline marked the fifth consecutive negative day for Apple, which hasn’t seen such a losing streak since October. The potential antitrust case could add to the problems the company already faces, including slowing iPhone sales and patent issues related to their Watch. It may even attack Apple’s business model of integrating its devices and services tightly.
Since July 2022, Apple has held the position of the most valuable publicly-listed company. However, so far this year, it has seen around $177 billion in market value erased. Although the stock has experienced larger percentage declines in the first week of January before, this year’s losses represent the biggest destruction of market value at the beginning of any year on record.
The downtrend began earlier in the week when Apple received two ratings downgrades, with analysts pointing to weak demand for iPhones due to a challenging macro environment in China. As a result, Apple’s lead over fellow technology giant Microsoft Corp. has reduced to less than $100 billion.
Investors seem to be concerned about the rarity of two consecutive downgrades before an earnings report. Gene Munster, managing partner of Deepwater Asset Management, stated that this situation was unprecedented in his years of covering the company. Additionally, Apple is likely experiencing pressure as investors reshuffle their portfolios at the start of the year, selling their winners and buying losers.
As a result of these losses, Apple’s market value has dropped to about $2.8 trillion, inching closer to Microsoft’s $2.7 trillion. On the other hand, Microsoft has benefited from the trend of artificial intelligence, as it holds the largest share in OpenAI and has invested billions into the parent company of ChatGPT.
Despite the challenges Apple faces, it remains a dominant player in the technology industry. The outcome of the potential antitrust case and the company’s ability to address its existing problems will be crucial factors. As the stock market fluctuates, investors will be closely watching Apple’s performance, waiting to see how it manages to maintain its position as the world’s most valuable stock.
