Leading tech titan Apple (NASDAQ: AAPL) saw its stock plunge 5% on Thursday, shedding nearly 14 points in the day’s session. The deep cut has put the tech industry in the spotlight again as AAPL is close to erasing all gains it delivered in a month. So what happened? In this article, we will explain the two important developments that led to AAPL’s 5% plunge.
Why Apple Stock Shed 5% in Value?
Siri’s New Feature Not Ready For Launch
The first reason is that just before the opening bell, Bloomberg published a report highlighting that Siri’s upgrades are postponed and not ready for launch. The virtual assistant’s in-voice commands are not working as intended, making it unreliable to process queries quickly. Even when it does, Siri is taking too long, making an upgrade mandatory, which the tech giant has not corrected yet. This led to Apple’s stock remaining in the red the entire trading session, shedding 5% in value.
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Regulatory Pressure Intensifies on the Tech Titan
The second reason is the growing regulatory pressure on Apple, which is affecting its stock price. Andrew Ferguson, the Federal Trade Commission (FTC) Chairman, sent a letter to CEO Tim Cook warning them of violating laws in the media sector. The letter alleges that the tech titan promotes left-wing narratives in its Apple News segment, while suppressing right-wing views. He accused the company of consolidating circulating power, favoring one side of the spectrum.
However, Apple and Tim Cook have not responded to the letter yet. The developments made investors reconcile that regulatory scrutiny would remain on the company. These two were the primary reasons why Apple stock slid 5%, erasing 14 points in the trading session. AAPL closed the day’s trade at $261 and remains bearish in the charts. While some commentators say this is a perfect buying opportunity, others claim that dips are on the cards.
