Why Apple Stock Could Get Hammered This Year

(NASDAQ: AAPL) stock has been a big winner since the start of the pandemic, soaring in value as the company's market capitalization surpassed $3 trillion. The party may finally come to an end this year, though, as a combination of stagnating iPhone sales, the potential collapse of a $20 billion annual revenue stream, and a lofty valuation come together to put pressure on the stock. While anything could happen in the stock market, it will be tough for Apple stock to keep its rally going throughout 2025.

As much as Apple tries to convince consumers that each year's iPhone models are worth the upgrade, that's increasingly not the case. In the early days of the smartphone industry, smartphones improved drastically each year. As the industry has matured, it's getting hard to tell the difference between this year's flagship smartphones and last year's flagship smartphones.

Apple's big thing last year was Apple Intelligence, the company's suite of AI-powered tools for the iPhone and its other devices. So far, Apple's AI push has been a swing and a miss. One survey found that 73% of iPhone users said the AI features add little or no value. Apple Intelligence will likely improve over time, but for now, it's not helping the company sell more iPhones.

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Source Fool.com