Apple’s (NASDAQ: AAPL) share price is showing weakness in pre-market trading as investors react to news that China is reportedly considering a probe into App Store practices.
The news is a setback for Apple, which turned green in the previous session. Apple is attempting to recover from losses stemming from the market sell-off triggered by President Donald Trump’s tariff-related announcements.
At the close of the February 4 session, AAPL was up 2.1%, ending the day valued at $232.34. However, in pre-market trading on Wednesday, Apple stock fell 2.8% to $226.
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The current Apple share price sell-off emerged after reports indicated that China’s market regulator is considering an investigation into the company’s App Store fees and payment policies. The State Administration for Market Regulation (SAMR) has not yet decided whether to proceed with a formal probe. This news adds to Apple’s regulatory challenges in a key market.
China, Apple’s second-largest revenue source after the U.S., is crucial for iPhone sales and its manufacturing ecosystem. However, rising competition from Huawei and stricter regulations have made the market more challenging.
Now, Apple faces a potential lawsuit amid renewed U.S.-China trade tensions, with past tariffs and retaliations adding uncertainty to its future.
AAPL stock price prediction
To determine how Apple stock might trade in the coming months, Finbold turned to its own artificial intelligence (AI) tool for projections on how the equity might perform by the end of 2025.
The tool, incorporating insights from several AI models, ruled out the possibility of Apple dropping below the $200 mark. The average predicted price across models stands at $233.83, representing a 2.22% increase from the current price.
The most optimistic outlook comes from Claude 3.5 Sonnet, forecasting a price of $276.50 (+20.87%), driven by positive momentum indicators and substantial technical factors.
On the lower end, ChatGPT-4o predicted a price of $210.00 (-8.2%), citing potential golden cross signals and favorable market sentiment. ChatGPT-4o Mini offered a more balanced view with a prediction of $215.00 (-6.01%), supported by a bullish crossover in key moving averages and optimism around Apple’s product launches and earnings.
To sustain further growth, Apple will be counting on strong revenue to fuel a stock surge. Notably, in Q4, earnings per share came in at $2.40, edging past estimates of $2.35, while revenue of $124.30 billion slightly beat forecasts of $124.12 billion.
Looking ahead, analysts expect steady growth, with Q1 2025 revenue at $94.32B (3.93% year over year) and Q2 at $89.69B (+4.57%). Full-year 2025 is projected at $409.51B (4.72%), climbing to $443.07B (8.20%) in 2026.
Wall Street’s take on APPL’s stock
Meanwhile, Wall Street remains cautious on Apple, although most analysts are expressing a bullish stance on the equity. For instance, as reported by Finbold, Bank of America (NYSE: BAC) analyst Wamsi Mohan maintained a ‘Buy’ rating on AAPL with a $265 price target, expecting minimal impact on Apple’s earnings from Chinese tariffs.
Evercore ISI reaffirmed a ‘Tactical Outperform’ rating with a $250 target, betting on growth in emerging markets and wearables.
In contrast, Jefferies’ Edison Lee downgraded Apple to ‘Underperform,’ cutting the target to $200.75, citing weak demand for smartphone AI and potential delays in Apple’s advanced packaging roadmap. This comes at a time when Apple faces iPhone-related challenges, with analysts citing lukewarm reception and missing AI features.
Featured image via Shutterstock
