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Apple Inc. (NASDAQ: AAPL) shares have declined 18% in 2025 as of June 6, making it the worst-performing member of the “Magnificent Seven,” surpassed only by Tesla. Currently, Apple is trading 21% below its peak, primarily due to investor concerns about tariff uncertainties and slow advancements in artificial intelligence (AI).
Despite a market capitalization of nearly $3.1 trillion, Apple’s net sales increased by less than 7% between fiscal 2021 and fiscal 2024, and only 4% in the first half of fiscal 2025. Furthermore, there are around 2.4 billion active Apple devices globally, but growth prospects may be limited as the iPhone matures nearly two decades into its lifecycle.
Warren Buffett’s Berkshire Hathaway has sold a considerable portion of its Apple shares in recent quarters, reflecting potential caution among investors. Currently, Apple’s price-to-earnings ratio stands at 32, with an expected earnings per share growth of just 8.8% from fiscal 2024 to fiscal 2027, indicating a lack of margin for safety in investments.
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