Apple (NASDAQ:AAPL) came into 2024 riding high from the strong earnings it delivered in the previous year. However, the technology giant has got off to a difficult start in the New Year. Shares of Apple have dropped 3.17% so far in 2024 as of close on Friday, January 5, 2024. The stock is still up 39% in the year-over-year period.
Should investors consider its recent slump a buying opportunity?
The company’s stock slid to close out the week after it was reported on Friday, January 5, that the United States Justice Department is preparing an antitrust lawsuit against Apple. The report indicates that the antitrust lawsuit could be filed as soon as this year. Moreover, it would represent the biggest antitrust risk for the company in years.
Reports state that the antitrust lawsuit could target how the Apple Watch works exclusively with the iPhone and the iMessage service. There could also be a focus on Apple Pay. If the lawsuit moves forward, it would represent the largest antitrust lawsuit for Apple in years. Apple has also faced regulatory risks due to a crackdown in Europe over Apple’s App Store. The company’s growing list of legal and regulatory battles are certainly worth monitoring for investors going forward.
Apple is still on track to deliver strong earnings growth going forward. In its most recent quarterly report, CEO Tim Cook also stated that Apple was investing heavily in generative artificial intelligence. Legal issues aside, Apple remains a powerhouse that investors can rely on going forward.
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