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Is Apple stock a buy in 2024?

Is Apple stock a buy in 2024?
Elmaz Sabovic

In a year marked by consecutive declines in sales for Apple (NASDAQ: AAPL), its stock has managed to weather multiple storms and come out stronger after each one, even hitting its all-time high, but is this disparity in performance about to stop?

Since the commencement of 2024, Apple shares have experienced a decrease of more than 2.78%, primarily attributed to recent Barclay’s analyst downgrades. 

The company is navigating challenges associated with diminishing sales and undergoing regulatory scrutiny.

Whether this trend will continue and reflect heavily upon the stock’s value and market capitalization can be based on multiple events and factors concerning the Cupertino giant.

A year of challenges?

The technology giant witnessed a sales decline each quarter of the preceding fiscal year, constituting its lengthiest negative streak in decades. Furthermore, Apple is trailing its tech counterparts Microsoft and Google in the rapidly expanding artificial intelligence (AI) domain, prompting inquiries into the factors underpinning the stock’s remarkable surge of over 50% in the previous year.

Adding to its challenges, the company confronts regulatory hurdles. Last month, China prolonged its prohibition on using iPhones and other foreign devices, intensifying efforts to limit the presence of the world’s largest company in the most prominent mobile market globally.

Moreover, Apple is navigating a series of regulatory deliberations by U.S. and EU authorities regarding the trajectory of its lucrative services segment in the coming months. 

Notably, the ongoing antitrust trial against Google disclosed that the tech giant disbursed over $26 billion in 2021 to establish its search engine as the default option on Apple devices and other smartphones and browsers.

Or opportunity?

However, regulatory decisions are not imminent, and there is a promising outlook for growth in 2024. Despite an overall decline in smartphone sales last year, the premium market, where Apple dominates with a 71% global share, saw a 6% increase. 

Apple is set to raise the average iPhone selling price this year, boosting revenues even if sales volume drops. New future products include the Vision Pro VR headset, a new iPad, and the potential integration of generative AI software into Apple devices. While not an early player in the AI trend, Apple’s cautious approach aims to maintain its reputation for delivering quality products.

In fact, for investors, this might present a “golden buying opportunity” rather than an “elevator exit,” according to Wedbush analyst Dan Ives on January 3.

Other analysts see this trend as a usual repetition that AAPL stock experienced in 2023 but might endure a short-term reversal, as per stock performance analyst Jake Wujastyk’s post on X on January 4.

AAPL stock pattern repetition chart. Source: Jake Wujastyk
AAPL stock pattern repetition chart. Source: Jake Wujastyk

Whether the trend from 2023 will carry on into this year is too early to tell, but experts remain optimistic about the tech giant’s stock. Nevertheless, traders should conduct thorough research before deciding on their potential investments.

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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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