TLDR
- Apple shares dropped 5% Thursday, the largest single-day loss since April 2025, leaving the stock down 4% year-to-date
- Bloomberg reported Siri AI enhancements delayed to May or beyond due to faulty in-app voice command functionality
- FTC Chairman Andrew Ferguson contacted Tim Cook regarding potential bias in Apple News content curation
- Analysts hold Moderate Buy consensus with $306.89 price target representing 17% upside potential
- Investor anxiety centers on whether Apple’s slower AI rollout will hurt competitive positioning and iPhone sales
Apple stock fell 5% Thursday in its sharpest decline in almost a year. Shares settled at $261.82 after starting the day at higher levels.
The drop eliminated the company’s gains for 2026. Apple now trades 4% below where it started the year.
Bloomberg triggered the selloff with a report about Siri problems. The AI-powered virtual assistant upgrade won’t arrive in the coming weeks as planned.
The launch has been pushed back to May or potentially later. In-app voice commands are failing to work correctly during testing.
Siri can’t reliably handle user queries. When it does process requests, response times stretch too long for practical use.
History Repeats for Siri
Apple has struggled with Siri upgrades before. The company postponed advanced features in March 2025 that still haven’t launched.
Privacy requirements create technical challenges. Apple wants to integrate AI without exposing user information to risks.
The company processes AI requests on devices or through protected servers. This approach differs from competitors who use cloud-based systems.
Apple confirmed the features remain on track for 2026 release. But Wall Street reacted to more than just a schedule change.
Competitive Concerns Grow
Tech rivals have already shipped new AI products. Apple’s more measured pace has investors worried about market position.
The delay raised questions about whether Apple can keep up. iPhone sales growth depends heavily on compelling new AI features driving upgrades.
Strong earnings from last month didn’t cushion Thursday’s blow. Markets price stocks on future expectations rather than historical performance.
FTC Turns Up Heat
Regulatory issues compounded investor worries. FTC Chair Ferguson wrote to CEO Tim Cook on Thursday about Apple News.
The letter questioned content selection methods in the news app. Reports suggested possible political slanting in article recommendations.
Ferguson asked Apple to review its practices. The inquiry doesn’t threaten immediate business impact but adds regulatory uncertainty.
Investors dislike uncertainty of any kind. The FTC attention came at the worst possible time for Apple’s stock price.
Tech Sector Faces Headwinds
Apple’s decline fits a broader pattern. Large technology stocks have weakened as AI spending concerns mount.
Software companies have fallen in recent trading sessions. Analysts recently lowered ratings on the entire tech sector.
Questions persist about return on investment for AI initiatives. Companies are spending billions without clear near-term payoffs.
Wall Street Stays Bullish
Despite Thursday’s drop, analysts remain constructive on Apple. Twenty-seven firms rate the stock with a Moderate Buy consensus.
The breakdown includes 17 Buy recommendations, nine Hold ratings, and one Sell call. All ratings come from the past three months.
Price targets average $306.89 per share. That implies 17.25% upside from current trading levels.
Apple’s market value sits at $3.8 trillion. The stock offers a 0.40% dividend yield and trades well above its 52-week low of $169.21.
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