Apple’s (AAPL) market capitalization has fallen by $640 billion in the past three days amid a rout in U.S. stocks.
Apple’s share price fell another 4% on April 7 to finish the trading session at $181.46. Since U.S. President Donald Trump announced reciprocal tariffs on nations around the world, AAPL stock has fallen nearly 20%, bringing its losses for the year to 28%.
Apple has been one of the most battered technology stocks during the current selloff in U.S. equities. The consumer electronics giant, which makes its signature iPhones in China, is seen as caught in the middle of a potential all out trade war between officials in Washington, D.C. and Beijing.
Dark Outlook
Analysts have been revising down their estimates and outlook on AAPL stock as the U.S. and China each slap tariffs of up to 34% on each other’s imports, with President Trump threatening an additional 50% tariff on Chinese products. By some estimates, the additional tariffs being imposed could add as much as $350 to the cost of an Apple iPhone, a price increase that’s likely to hurt demand.
Apple is one of the most exposed companies in a trade war given its manufacturing concentration in China, as well as India, Vietnam and Thailand, all of which face increased U.S. tariffs. Barclays (BCS) said that Apple must raise prices or the company could suffer as much as a 15% cut to its earnings per share. Other analysts have offered similarly negative outlooks for AAPL stock.
Is AAPL Stock a Buy?
The stock of Apple has a consensus Moderate Buy rating among 32 Wall Street analysts. That rating is based on 17 Buy, 11 Hold, and four Sell recommendations assigned in the last three months. The average AAPL price target of $248.28 implies 36.82% upside from current levels.
