Apple stock bounces; U.S. stocks rally as tariff fears subside, Dow jumps
April 8, 2025
Apple stock (AAPL) has faced turbulence in 2025, but signs of a rebound are emerging despite recent challenges. After hitting an all-time high of $259.85 on December 26, 2024, the stock plummeted 31% due to delays in Apple Intelligence features, especially regarding the much-neglected Siri personal digital assistant, and U.S. import tariff concerns.
However, in Tuesday trading, AAPL is showing resilience, up around 3%, with analysts and investors pointing to several factors fueling its recovery.
First, Apple’s fundamentals remain robust. The company boasts exceptional cash flow, strong operating margins, and a fortress-like balance sheet, allowing it to weather macroeconomic headwinds like the Trump administration’s tariff negotiations aimed at achieving reciprocal trade.
Second, consumer demand persists. The tariff announcement triggered a rush to Apple stores as customers preemptively bought iPhones, fearing price hikes. This surge underscores the ecosystem’s pricing power and loyalty, which continue to drive services revenue growth—a key profit engine.
Finally, optimism surrounds Apple’s pipeline. Rumors of securing TSMC’s first 2nm chips for the iPhone 18’s A20 suggest a performance leap, one that will embarrass competitors’ outmoded chips, potentially spurring an iPhone upgrade cycle. Analysts like Citigroup, maintaining a $275 price target, see tariffs as short-term noise, not a structural threat. With foundation that Steve Jobs built remaining rock solid, AAPL’s rebound reflects confidence in its fundamentals, adaptability, and enduring appeal.
MacDailyNews Take: The turbulence will continue for awhile. Just relax and enjoy the ride! Once the air clears, deals are inked, and, importantly, the U.S. tax bill is passed and signed, AAPL and the markets will be just fine.
As we wrote just last evening: “Patience, padawans.”
Okay, now who’s the smartypants with impeccable timing who got in at $174.62 yesterday?
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