Shares of Apple (AAPL) dropped more than 2% on Monday, the worst showing among the Magnificent Seven stocks. The group as a whole posted an average loss of 0.7%, with Tesla (TSLA) also weighing heavily on investor sentiment.
The selloff in Apple comes after a major sentiment shift from Wall Street analysts.
Just days ago, analysts were reiterating “Buy” ratings ahead of the company’s latest earnings report.
But after Thursday’s numbers - and more importantly, Apple’s cautious outlook - firms like Jefferies moved to a “Sell” rating, flagging the stock as a risk in portfolios going forward.
At the heart of the downgrade are the pending tariffs.
Apple’s earnings came in relatively strong - revenue grew 1.9% year-over-year to $46.84 billion, beating Wall Street’s $45.8 billion forecast. iPhone sales, driven by the new iPhone 16 family and its lower-priced iPhone 16e, topped expectations after a disappointing Q1.
But guidance was soft, especially with looming policy risks on the horizon.
Then came Monday’s headline: Apple might push its next major iPhone release to spring 2027.
That uncertainty sparked a new wave of selling, with the stock now flirting with a critical level of $200 for the third time in a month. That round-number support level has proven to be psychologically important. When it broke in April, shares quickly dropped to $170 on the heels of Trump’s tariff announcement.
Technically, the stock has moved into dangerous territory.
Apple’s 50-day moving average turned bearish in March and just last month triggered a “Death Cross,” a clear signal that bears have taken long-term control.
To make matters worse, Apple has now fallen below its 20-month moving average in April. This rare signal last seen in 2022, just before the stock dropped from $180 to $130.
With Wall Street sentiment turning sour and technical patterns pointing sharply lower, Apple is now firmly in bear market territory.
The next target? $155.
That’s where the charts, momentum, and historical patterns suggest the stock could land if selling pressure continues.
Investors should treat any break below $200 as a warning shot.
The combination of tariffs, soft guidance, and a bearish chart setup makes Apple one of the most vulnerable stocks in the Magnificent Seven heading into summer.
