Apple shares are reeling from an eight-day selloff, the longest in over three years, as President Donald Trump’s iPhone tariff threat looms over the tech giant’s future profitability.
Bloomberg reports that Apple is facing a difficult road ahead as President Donald Trump’s recent threats to impose a 25 percent tariff on the company’s products made outside the U.S. have sent its shares tumbling. The stock has fallen for eight consecutive sessions, marking its longest losing streak since January 2022, and is down 22 percent year-to-date, significantly underperforming the Nasdaq 100 Index’s 0.5 percent decline. Shares are trading positive on Tuesday morning, finally breaking the losing streak.
While some analysts remain skeptical about the likelihood of the tariffs being implemented, the mere possibility has eroded investor confidence in the $3 trillion company. Haris Khurshid, chief investment officer at Karobaar Capital, noted, “This kind of tariff rhetoric, even if it never materializes, chips away at investor confidence. You can’t run a $3 trillion company with a trade grenade hanging overhead.”
The potential tariffs present a challenging dilemma for Apple, as it would either have to absorb the higher costs, which would negatively impact its earnings and margins, or pass the increased prices on to consumers, risking a decline in demand. This comes at a time when the company is already grappling with sluggish growth and difficulties in its artificial intelligence offerings.
Trump’s stance on the matter has been rapidly evolving, with the president initially targeting Apple specifically, and later expanding the proposed 25 percent tariff to all foreign-made smartphones. Ironically, this broader application could work in Apple’s favor, according to JPMorgan analyst Samik Chatterjee, who believes that if all competitors face the same obstacle, “Apple’s pricing power with consumers as well as suppliers would position the company favorably relative to peers, rather than at a disadvantage.”
The uncertainty surrounding the tariffs has led analysts to trim their estimates for Apple’s future earnings and revenue. Over the past three months, the consensus for Apple’s net 2026 earnings has dropped by 5.1 percent, while the revenue forecast has decreased by 3.9 percent. Further cuts to estimates would make the stock appear more expensive by reducing the denominator in the price-to-earnings ratio. Currently, Apple trades at around 26 times estimated earnings, above its 10-year average and higher than its megacap peers that are expected to grow faster.
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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