The US stock market has plummeted this week following US President Trump’s Liberation Day tariffs. Indeed, the tech sector appeared to be some of the hardest hit, as mega-cap stocks bore the brunt of the sell-off. As a collective, the Magnificent 7 lost a remarkable $1 trillion in market cap. On what was the market’s worst day since 2022, Apple dropped more than 4%. Moreover, Microsoft and Alphabet both fell more than 1%. However, all three have continued their decline, with Apple leading the way, dropping an additional 3.7%.
In the last week, Apple (AAPL) is down over 13%. As the company relies heavily on operations in Asia, Trump’s tariffs put a huge hammer on the iPhone maker. While Apple went unscathed by Trump’s 2018 tariff plan, this time around, the iPhone maker wasn’t as lucky. The drop will likely continue into the weekend, as Magnificent-7 stocks are down for the count. However, some experts are still hopeful and not as concerned about the tariffs.
Wedbush’s Daniel Ives recently wrote about the post-tariff future of Apple (AAPL) stock, saying it may be too early to panic. While he notes the immediate drop in the stock market is concerning, Ives suggests, strong sales from Apple will keep the company’s shares from dropping too far. “It’s a very nervous announcement for Apple given its China exposure,” Ives said in a note to investors. Fortunately, he thinks iPhones and other Apple products ultimately will win exemptions. “Investors will sell the stock and ask questions later, but we saw it play out in Trump 1.0.”
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Angelo Zino, a technology analyst at CFRA, is also still calling Apple (AAPL) stock a buy. “Even without an exemption, things may not be as bad,” Zino says. “Over the last six years, Apple has expanded its gross margins from about 38% to 47%, which gives them a bit of leeway if they have to take a hit on tariffs.”
There will always be some investing experts that suggest buying the dip on top stocks when they trade lower. While AAPL has solid price projections over the next 12 months, the tariffs definitely put a wrench in those forecasts. Therefore, investors should be cautious about the long-term before backing Apple or any other magnificent-7 stock this year. Things could always improve, however, with America’s current economic uncertainty, that timetable is unclear.