TLDR:
- Apple stock has dropped 15% in 2025, now trading around $211
- Trump owns approximately 2,355 Apple shares worth over $500,000
- Evercore ISI keeps Outperform rating with $250 target price
- Services business faces regulatory threats to App Store and Google search payment deal
- New AI battery management and accessibility features in development
The stock of tech giant Apple has taken a hit in 2025, falling 15% year-to-date and sitting more than 18% below its December 2024 high of $260.10.
Even former President Donald Trump has skin in this game. Regulatory filings show he owns over $500,000 worth of Apple shares.
At Apple’s May 16 closing price of $211.26, that investment translates to roughly 2,355 shares. This holding represents just a tiny fraction of Trump’s estimated $5 billion net worth.
Despite the stock’s struggles, some Wall Street analysts remain bullish. Evercore ISI recently reaffirmed its Outperform rating with a $250 price target.
Apple continues to be a market heavyweight with a $3.16 trillion market cap. The company generated $138.9 billion in EBITDA over the past twelve months.
With total revenue reaching $400.4 billion and a strong gross profit margin of 46.6%, Apple’s financial foundation remains solid.
Services Under Scrutiny
Evercore’s analysts highlighted Apple’s Services business as critical to the company’s valuation and growth trajectory.
However, this segment faces mounting challenges. Regulatory issues affecting the App Store and potential changes to Google’s search engine payment agreement pose serious threats.
The App Store currently accounts for 2% of Apple’s revenue and 6% of its earnings per share. Meanwhile, the Google search deal represents 6% of revenue and a more substantial 16% of EPS.
Under a worst-case scenario, losing both revenue streams could slash Apple’s EPS by approximately 20%. This would potentially drive the stock price down to $144.
On the flip side, a more optimistic outlook assumes Apple successfully appeals the Epic case. This would prevent impact on App Store revenue.
The bull case also counts on the Department of Justice not interfering with the Google payment arrangement. Under these favorable conditions, the stock could reach $300.
Trade Tensions and New Initiatives
Apple faces additional pressure from potential tariffs on Chinese goods. The company has long relied on Chinese manufacturing for its iPhones.
President Trump has voiced criticism of Apple’s efforts to shift production to India, following discussions with CEO Tim Cook.
A recent trade agreement has somewhat calmed fears of an all-out trade war between the US and China. However, uncertainty remains a factor for investors.
Looking ahead, Apple is betting on innovation to drive growth. The company recently announced new accessibility features coming later this year.
These include Accessibility Nutrition Labels on the App Store and a new Magnifier app for Mac users.
Apple is also developing an AI-based battery management system for iOS 19. This technology aims to extend iPhone battery life by analyzing user behavior and optimizing power usage.
Current analyst projections show Apple’s diluted EPS at $6.40, with consensus forecasts of $7.22 for fiscal year 2025.
Evercore suggests that a strong iPhone upgrade cycle with higher average selling prices could push fiscal 2026 earnings to $9 per share. This scenario supports their $250 target price.
Other developments include Apple blocking access to “Fortnite” on iPhones globally. This affects users in both the United States and European Union markets.
KeyBanc Capital Markets has taken a more cautious stance. They maintain a Sector Weight rating, citing concerns over high growth expectations, stagnant upgrade rates, and increased Chinese competition.
The analyst at Evercore noted widespread negative sentiment toward Apple stocks. They suggested favorable outcomes in legal cases or tariff negotiations could provide a meaningful boost to share prices.
Apple’s stock closed at $211.26 on Friday, May 16, as investors continue to weigh these various factors.
