Apple Inc. has had a rocky start to the year, experiencing a series of declines in its stock price. In fact, this is the first time since 1982 that Apple shares have closed lower in each of the first four trading sessions of a year, according to Dow Jones Market Data.
However, it's important to remember that it's not about how you start but how you finish. In 1982, despite the initial setback, Apple's stock ended up rallying by an impressive 35%, as reported by FactSet data.
Unfortunately, this recent decline is not an isolated event. Including a losing session at the end of 2023, Apple's stock has seen five consecutive trading days of declines, resulting in a 6.4% decrease over this period. This represents the worst five-session streak for Apple since September 12 when it fell by 7.1%.
As a result of this downward trend, Apple has experienced a significant decrease in market capitalization, losing $193 billion. This has brought Microsoft Corp. closer to overtaking Apple as the most valuable U.S. company, with just under $100 billion separating the two.
Amidst these challenges, Apple is also facing a patent dispute related to features on its Apple Watch Series 9 and Apple Watch Ultra 2. While an appeals court has temporarily blocked an import ban on these devices, a New York Times report suggests that the Department of Justice is moving closer to a sweeping antitrust lawsuit against Apple.
Furthermore, in the first week of the year, two analysts downgraded Apple's stock due to concerns about its valuation and growth prospects.
Despite these obstacles, Apple remains a prominent player in the consumer-electronics industry. Only time will tell how the company will navigate these challenges and whether it will once again overcome adversity as it did in 1982.
Read: This is why the S&P 500 can be expected to continue to outperform small-cap stocks
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