Source: sylv1rob1 / Shutterstock.com
If you are investing with the premise that apple (NASDAQ:AAPL) is infallible and invincible, think again. The cracks in the company's armor give AAPL stock a 'D' grade and we cannot confidently recommend it at this time.
I've already pointed out some of the problems with Apple's seemingly omnipotence. For example, iPhone shipments in February were down about 33% from a year ago. In the first six weeks of 2024, iPhone sales were down 24% year over year. There's more evidence that Apple isn't having a great year so far, so hang in there.
Apple Resorts layoffs
As of April 5, AAPL stock has fallen 8.65% since the beginning of the year. This is by no means a great performance for a Magnificent Seven stock.
This is a sign that all is not necessarily well for Apple. And here's another sign. Apple is currently resorting to layoffs.
Recall that Apple CEO Tim Cook previously declared mass layoffs to be a “last resort.” But here Apple lays off his 614 employees in California.
Apparently, this disappointing news was announced after Apple abandoned Project Titan, the company's attempt to produce an electric car. He had nearly 2,000 employees working on that project, so don't be surprised if more are laid off at some point.
Apple's personal robot effort could be a huge failure
It may seem strange to see Apple fail at something. However, we must frankly admit that Project Titan was a huge failure that cost some people their jobs.
You might think that Apple's management would learn a lesson from this unfortunate experience. One might think that Apple would stick to its core business, like selling smartphones, for a while.
But soon after the failure of Project Titan, Apple is moving first and foremost into personal robotics. Apple is reportedly developing a robot that follows people around the house in hopes that this will become the “next big thing.”
Wedbush analyst Dan Ives is highly skeptical of Apple's new personal robot efforts. He argues that Apple should focus on artificial intelligence, saying CEO Tim Cook's “legacy will be AI.”
Ives argues that Apple's foray into home robots will be a “blank moment” and a “horror show” for the company.
AAPL stock could be under pressure for a while
With Apple canceling Project Titan and starting laying off employees, it's clear that the company is not invincible. Additionally, Apple's entry into the personal robot space is risky. As Ives suggests, Apple should really put its capital and effort into AI rather than home robots.
Overall, Apple seems to be going through a rough patch. Until there are clear signs that the rough patch is over, it's hard to feel confident in AAPL stock. Therefore, we have assigned the stock a 'D' grade and investors can choose to stay on the sidelines for now.
On the date of publication, neither Louis Navellier nor the InvestorPlace research staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
