Arguments against Apple stock in 2024 include its overvaluation despite underperformance. Apple's revenue growth has stagnated, with a notable sales decline in 2023, the first since 2019. Intense competition, particularly from Huawei in China, is eroding Apple's market position.
Furthermore, Apple's recent AI initiatives are seen as reactive rather than innovative. These factors suggest that the current high valuation of Apple stock is not justified by its recent performance or competitive standing.
Additionally, Apple faces legal and regulatory challenges. The U.S. Department of Justice has filed an antitrust lawsuit against Apple, which could lead to significant penalties and increased scrutiny over its business practices. Furthermore, competition in key markets like China remains fierce, with local companies like Huawei outpacing Apple's smartphone sales growth.
These factors, combined with the high valuation of Apple stock, have led some analysts to question whether the current price is justified given the company's performance and challenges.
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