Apple Inc.’s stock has had a rough start to the year and is now nearing a key technical level that, if breached, could signal more downside ahead. The tech giant has fared worst among Wall Street's envious ‘Magnificent Seven’ group so far in 2025 and has slumped nearly 11 per cent through Thursday’s close.
Apple has underperformed the S&P 500 index, which has gained about four per cent to touch a fresh record high to start the year. According to data compiled by Bloomberg, Apple’s stock performance has logged the worst start of the year for the iPhone maker since 2008, hitting a 17-year low.
The tech major's share price decline has brought shares within a few dollars of the 200-day moving average, a technical level that can be seen as a long-term support and is one that many traders watch. According to Bloomberg, the key technical level is a precarious position for the Apple stock.
Until recently, Apple was the largest company by market value in the world and commanded the largest weighting in the S&P 500 Index. Nvidia has since eclipsed it during Apple’s tumble. While one single stock does not always move the rest of the index, Apple’s size and position make it one to watch.
Also Read: How to use Apple’s Image Playground to create stunning music playlist art: Step-by-step guide
So far, the S&P 500 has continued to rally, even with Apple’s selloff. Still, if any of the other big technology stocks similarly start to tick lower, it could be a concerning sign for the bull market that’s now entering its third year.
According to Wall Street experts, if Apple shares fall below the 200-day moving average, the next level to watch out for is around $208, based on a technical analysis. Apple is scheduled to report quarterly earnings on January 30 after markets close, a major catalyst for shares that investors will watch closely.
Wall Street expects the iPhone maker to report earnings per share of $2.35 on $124.2 billion in revenue. Analysts also say Apple shares could test the 200-day moving average level and rebound higher, especially if it reports earnings that beat analyst expectations. While the 200-day is a key psychological level that can be a warning sign for stocks, some traders may also use it as an indicator to start buying shares at a discount.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.