"Over the past week, Apple (NASDAQ:AAPL | AAPL Price Prediction) shares have fallen by more than 4% despite posting its strongest quarter on record, a paradox that highlights investor concerns about the company's cautious AI strategy. While revenue surged past $143 billion and earnings beat expectations with $2.84 EPS, the stock has declined 3% year-to-date even as the S&P 500 remains flat."
"Reddit sentiment for Apple has been notably muted despite the record quarter. Sentiment has been volatile, spiking to 74 following the $2 billion acquisition of Q.ai in late January as investors hoped for accelerated AI capabilities, then plunging to 32 by mid-February as Siri delays continued and rising component costs (including doubled NAND flash memory prices from Kioxia) threatened margins without corresponding AI innovation to justify premium valuations."
"The concern centers on Apple's measured approach to artificial intelligence. Retail investors continue debating whether the company is moving aggressively enough: Apple relies heavily on partnerships with Google for AI development rather than building proprietary infrastructure Siri AI rollout delays continue to frustrate investors expecting faster innovation Component costs are rising, with Apple agreeing to doubled NAND flash memory prices from Kioxia starting Q1 2026"
Apple reported a record quarter with revenue above $143 billion and $2.84 EPS, yet shares dropped over 4% in the past week and sit down 3% year-to-date. Investor concern focuses on a cautious AI approach that favors partnerships, notably with Google, rather than proprietary infrastructure, along with delays in Siri's AI rollout. Retail sentiment has been muted and volatile, with social scores averaging 41.55 and low activity. Rising component costs, including doubled NAND flash prices from Kioxia starting Q1 2026, add margin pressure amid skepticism about sufficient AI-driven value creation.
Read at 24/7 Wall St.
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