Apple’s Stock Lags Nasdaq as AI Delay Sparks Downgrades

Apple's stock decouples from Nasdaq amid AI lag and regulatory pressure, with a potential March event offering hope.

  • Apple‘s stock correlation with the Nasdaq 100 has plummeted to its lowest level since 2006, as it largely sits out the AI sector race.
  • Market prediction data from Polymarket forecasts a further decline for AAPL stock, while technical issues with Siri upgrades also weigh on sentiment.
  • Growing regulatory scrutiny from the Federal Trade Commission (FTC) over alleged media bias presents another significant headwind for the company.
  • An upcoming March 4 product event in New York, London, and Shanghai could provide a potential catalyst for the stock’s recovery.

While other tech giants sprint ahead in Artificial Intelligence, Apple (AAPL) has become a market outlier, causing its 40-day correlation with the Nasdaq 100 Index to tumble to 0.21 last week, according to data compiled by Bloomberg. This marks the stock’s weakest link to the benchmark since 2006, a stark drop from a May correlation of 0.92. Consequently, fears are mounting that Apple shares could see further declines from their current $263 price.

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Market prediction data shows Polymarket forecasts a drop to $240 by the end of February. Another immediate pressure came from a recent Bloomberg report highlighting postponed and unreliable upgrades to Siri. This news contributed to the stock shedding 5% in a single trading session. Meanwhile, regulatory pressure is also affecting its stock price, as Federal Trade Commission (FTC) Chairman Andrew Ferguson sent a warning letter to CEO Tim Cook.

The letter alleges that Apple promotes left-wing narratives while suppressing right-wing views in its Apple News segment. However, the company does have a potential catalyst on the horizon with a “special Apple Experience” event scheduled for March 4. The invitation to media in New York, London, and Shanghai has fueled speculation about new device rollouts.

Analyst Wayne Kaufman of Phoenix Financial Services noted, “Apple is not a bargain and it hasn’t been in a while, and there’s no real growth there compared with the rest of tech.” He added, “However, I think the market will continue to give it the benefit of the doubt.” Kaufman also pointed out that hardware carries less risk than software, stating, “it isn’t like people can use AI to code themselves a new iPhone.”

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