Investors are turning their attention to Apple after Elon Musk threatened legal action against the iPhone maker.
AAPL – Daily Chart
The price of AAPL has jumped recently after the stock struggled with tariff effects from the April lows.
Investors are turning their attention to Apple after Elon Musk threatened legal action against the iPhone maker. In a recent social media post, Musk said the company is in breach of antitrust laws since it’s “behaving in a manner that makes it impossible for any AI company besides OpenAI to reach #1 in App Store”.
Musk’s latest target would be a major headwind for Apple shares as it could intensify regulatory scrutiny against the company’s App Store practices. A prolonged court battle could also add reputational damage, especially given AAPL’s current EU fines and U.S. investigations could dampen investor sentiment moving forward.
Musk’s claims could also hurt Apple’s credibility in the AI space. The latest news comes at an important time as Wall Street analysts are not overly bullish on Apple stock. The consensus view on Apple stock remains at “Moderate Buy,” but the average target of $236 indicates less than 3% upside from current prices. The market consensus on Tesla shares indicates downside of around 13% from here.
A lawsuit against Apple could also be a negative for Tesla stock as well, because it signals yet another distraction from the company’s core business interests.
In a recent CNBC appearance, Wedbush senior analyst Dan Ives also called it a “massive headache,” saying Musk’s fixation on xAI and AAPL risks sidelining Tesla’s strategic priorities.
Apple shares have been upbeat after Q2 earnings were released during the last two weeks.
The company delivered $94 billion in revenue and $1.57 in earnings per share, which was ahead of consensus projections of $89.4 billion and $1.43. The company’s 46.5% gross margin came in at the high end of previous management guidance.
