Apple had a challenging start to the first quarter of 2024. The company is currently embroiled in a high-profile antitrust dispute with the Department of Justice, is also facing regulatory scrutiny from the European Union and to make things worse it also experiencing a decline in iPhone sales in China.
Moreover, Apple continues to grapple with a deficiency in generative AI capabilities. While there’s anticipation surrounding the potential unveiling of a generative AI offering at its upcoming WWDC developer event on June 10, the company must deliver an impressive showcase to catch up with its formidable Big Tech competitors, including Microsoft (MSFT) and Google (GOOG, GOOGL).
According to Wall Street analysts, the consensus price target stands at just under $200, suggesting a modest upside from its current trading level. Analysts’ growing bearish sentiment towards the stock stems from various concerns, primarily centered around a decelerating growth rate. Additionally, the looming possibility of a recession could further strain domestic demand for Apple’s products.
Meanwhile, MSFT stock has significantly outperformed Apple’s performance over the past year, with a growth rate of 65% compared to Apple’s 30%, suggesting that Microsoft may continue to outshine Apple in 2024.
