Apple Shares Are Losing Haven Allure as Headwinds Deter Bulls

(Bloomberg) — For years, investors have talked of Apple Inc. as a potential port of safety in times of market turmoil. That hasn’t been borne out this time around.

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The iPhone maker has tumbled in recent sessions, extending its year-to-date underperformance amid a growing number of risks that are overshadowing its traditional high-quality characteristics.

While Apple offers steady earnings growth and sits on a mountain of cash, headwinds form a daunting list for would-be bulls: it is heavily exposed to tariff uncertainty and China, its artificial intelligence offerings have repeatedly fizzled, and its lucrative partnership with Google parent Alphabet Inc. is potentially at risk. It trades at a premium to megacap tech peers despite slower revenue growth, suggesting that the haven case is harder to make for Apple and other big-tech names.

“People like to park in Apple, but right now the stock is expensive, and not only is growth slow, but the catalysts for growth are absent,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. “It doesn’t seem like AI is doing much for it, the environment is very uncertain, and it is very at risk with tariffs and China. While it isn’t as controversial as Tesla, it seems like it is just treading water, and it has been a while since we’ve seen anything truly innovative from it.”

Shares have dropped 14% this year, and are coming off their biggest three-day decline since November 2022, a selloff that took the stock to its lowest close since September. The stock fell an additional 0.8% on Thursday.

The Nasdaq 100 Index is down 7% in 2025, and Apple is responsible for nearly a fifth of that decline, according to data compiled by Bloomberg. The CBOE Apple VIX, which tracks a market estimate of future volatility for the stock, has risen 56% off a February low.

Recent volatility reflects rising geopolitical risk, especially with respect to tariffs. President Donald Trump recently doubled levies against China to 20%, a potentially significant development for Apple, which counts the country as both as a key manufacturing hub and a major market; it got about 17% of its fiscal 2024 revenue from the greater China region, according to data compiled by Bloomberg.

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