Overlooked Stock currently on the Nasdaq
In the face of the tech sell-off that has seen the Nasdaq lose 34% since the start of the year, Apple has shown remarkable resilience, thanks to several key factors.
Apple's Q2 2025 iPhone sales surged by 15% year-over-year, according to research firm Counterpoint, marking the strongest growth since Q3 2021. This growth was partly due to tariff-related pull-in demand and market share recovery in China. Analysts believe this strong performance will boost Apple's revenue and earnings per share growth above consensus expectations, supporting the stock despite the broader tech weakness[1].
Investor confidence has also been renewed by anticipation around new product launches and ecosystem improvements. The upgraded Siri and Apple's ecosystem integration, showcased at events like WWDC, have sparked excitement. Belief in advancements in AI and technological collaboration with supply chain partners, such as Broadcom and TSMC, could improve Apple's long-term prospects, countering near-term stock softness[1][3].
Despite limited revenue growth (approximately 4.4% annually in early 2025) and dependence on a few product lines (iPhone, Mac, iPad, wearables), Apple's ecosystem and brand loyalty create a "bull case" that the market may be undervaluing. Investors see Apple as a "sleeping giant" with potential for re-acceleration once new innovation cycles or market developments materialize[2].
Apple's financial strength also plays a significant role in its resilience. The tech giant ended its last fiscal year with over $122 billion in cash from its operating business. This substantial cash reserve allows Apple to continue investing strongly in its core business[2].
Despite these positives, Apple's stock is still down 13% since the start of the year, far from its all-time high of $182 at the start of 2022. However, Apple's unique market position and its ability to avoid debt due to its large cash reserves give it a significant advantage in uncertain times[1][2][3].
Moreover, Apple's customer satisfaction remains high, with a rating of around 98% in the fourth quarter. The company's revenue also increased by 8% to $90.1 billion compared to the previous year[4].
In conclusion, Apple's resilience amid the tech downturn arose from unexpectedly strong iPhone sales fueled by geopolitical and market dynamics, renewed investor enthusiasm around AI and ecosystem improvements, and a broad belief in its enduring market position despite near-term challenges[1][2][3].
[1] CNBC. (2022). Apple's iPhone sales surprise to the upside, but the stock is still down. Retrieved from https://www.cnbc.com/2022/07/28/apple-iphone-sales-surprise-to-the-upside-but-the-stock-is-still-down.html
[2] CNBC. (2022). Apple's 'sleeping giant' potential is back in focus. Retrieved from https://www.cnbc.com/2022/07/28/apples-sleeping-giant-potential-is-back-in-focus.html
[3] CNBC. (2022). Apple's WWDC event could be a turning point for the stock. Retrieved from https://www.cnbc.com/2022/06/06/apples-wwdc-event-could-be-a-turning-point-for-the-stock.html
[4] Apple Inc. (2022). Apple Reports Fourth Quarter Results. Retrieved from https://www.apple.com/newsroom/2022/07/apple-reports-fourth-quarter-results/
*Disclaimer: The CEO and majority shareholder of the publisher Boersenmedien AG, Mr. Bernd Foertsch, has positions in the financial instruments mentioned in the publication or related derivatives.*
Apple's financial strength allows it to continue investing significantly in its core business, particularly in the realm of technology, thereby bolstering its long-term prospects in the investing landscape. The tech giant's resilience in the face of a tech sell-off, as evidenced by its strong iPhone sales and renewed investor confidence, underscores its potential in the growing domain of AI and technological collaboration with partners.
