The Stock of Apple Has Started 2024 on a Sour Note That Has Not Been Seen in 42 Years

Apple Inc.'s commencement of 2024 has etched a notable chapter in history, albeit not in a favorable manner. The company's stocks concluded the week with a downturn for the fourth consecutive session. This occurrence marks the first time since 1982 that Apple shares have closed lower in each of the first four trading sessions of a new year, as reported by Dow Jones Market Data.

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However, the adage "it's not how you start but how you finish" might offer a glimmer of hope. Despite the challenging start, historical data from FactSet reveals that Apple's stock managed to rally an impressive 35% in 1982.

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Taking into account a losing session at the end of 2023, Apple's stock has now recorded five consecutive trading days of declines, experiencing a 6.4% decrease over this period. This represents its most unfavorable five-session streak since the period ending September 12, when it faced a 7.1% decline.

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The financial repercussions of Apple's recent struggles are substantial, with the company witnessing a reduction of $193 billion in market capitalization during this losing streak. Notably, Microsoft Corp. is on the brink of potentially surpassing Apple as the most valuable U.S. company, with less than $100 billion separating the two entities. The last time Microsoft held this position was in late 2021.

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In addition to market challenges, Apple is currently grappling with a patent dispute related to features on its Apple Watch Series 9 and Apple Watch Ultra 2. While an appeals court temporarily halted an import ban on these devices late last year, the company may face more significant legal hurdles in the near future. The New York Times reported on Friday that the Department of Justice is moving closer to initiating a sweeping antitrust lawsuit against Apple.

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Amidst these challenges, the first week of the year saw two analysts downgrading Apple's stock. Their concerns primarily revolve around the company's valuation and growth prospects, reflecting a broader sentiment among analysts regarding Apple's immediate outlook.

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As the tech giant navigates through this turbulent period, market observers are keenly watching whether Apple can reverse its recent fortunes and whether the historical pattern of a challenging start leading to eventual success will repeat itself in 2024. The convergence of legal uncertainties, market dynamics, and analyst sentiments adds complexity to Apple's current narrative, making it a focal point in the evolving landscape of the technology and business sectors.