The Market's Worst Nightmare

Apple Stock is Sinking Today: Here's Why

April 10, 2025 - Apple Inc. (AAPL) shares are falling today, down 2.5% as of this writing. The decline comes as the tech giant's latest earnings report fails to impress investors.

Apple's Q2 2025 earnings report, released after the market close yesterday, showed a slight miss on revenue expectations. The company reported revenue of $89.2 billion, just shy of the $90.4 billion Wall Street was expecting. Earnings per share (EPS) of $2.33 were in line with estimates.

However, it's the guidance that's really spooking investors. Apple's management said they expect revenue to grow just 3.5% year-over-year in Q3 2025, a significant slowdown from the 7.5% growth seen in Q2. The company also cited concerns about the global economy and the impact of rising interest rates on consumer spending.

The decline in Apple's stock is also partly due to concerns about the company's exposure to the weakening Chinese economy. Apple gets about 20% of its revenue from China, and the country's economic slowdown is expected to continue in the coming quarters.

"We're seeing a perfect storm of factors that's impacting Apple's stock," said Wedbush Securities analyst Dan Ives. "The economy is slowing down, interest rates are rising, and the Chinese market is weakening. It's a tough combination for any company, let alone one that's as heavily reliant on consumer spending as Apple is."

Despite the decline, Apple's stock is still up about 15% year-to-date. The company's strong brand loyalty and ability to generate significant cash flow from its services segment have helped cushion the blow from the economic headwinds.

For now, investors are taking a cautious approach, and Apple's stock is likely to remain volatile in the coming weeks. However, the company's long-term growth prospects and strong balance sheet suggest that the decline may be an opportunity for long-term investors to get in at a discount.