Apple (AAPL) Stock Tumbles 5% on Siri Setback and Regulatory Heat
TLDR
- Apple stock plunged 5% Thursday in its worst session since April 2025, wiping out year-to-date gains
- Siri AI upgrade delayed to May or later due to unreliable in-app voice command processing issues
- FTC Chair sent letter to Tim Cook questioning Apple News content selection practices
- Wall Street analysts maintain Moderate Buy rating with $306.89 average price target
- Concerns grow about Apple’s AI strategy as competitors launch features faster
Apple shares crashed 5% Thursday, marking the tech giant’s steepest decline in nearly a year. The stock closed at $261.82 after erasing all 2026 gains.
Apple Inc., AAPL
The selloff came after Bloomberg reported delays to Apple’s highly anticipated Siri AI upgrades. The rollout has been pushed to May or later from the originally planned timeline of coming weeks.
In-app voice commands aren’t working properly. Siri struggles to process queries reliably or takes too long to respond when it does.
This isn’t Apple’s first Siri stumble. The company delayed advanced capabilities in March 2025, and many features remain unavailable.
Apple’s privacy-first approach may be complicating development. The company tries to keep AI processing on devices or secure servers to protect user data.
Despite the delay, Apple maintains the features will launch sometime in 2026. But investors saw more than just a postponed product release.
AI Race Heats Up
Wall Street has been watching Apple’s AI moves closely. Competitors have already rolled out new AI tools while Apple proceeds more cautiously.
The delay sparked fears Apple could lose ground in the race to add compelling features to iPhones. Future growth hinges on whether AI capabilities can drive upgrade cycles.
Apple reported solid earnings last month. But markets care about what’s next, not what already happened.
Regulatory Pressure Mounts
The same day brought more trouble. FTC Chair Andrew Ferguson sent CEO Tim Cook a letter about Apple News.
Ferguson questioned whether the app’s content selection violates terms of service through political bias. The letter followed reports of potential conservative censorship in news feeds.
The regulatory scrutiny added uncertainty for already nervous investors. It didn’t impact sales directly but raised new questions about oversight.
Broader Tech Weakness
The drop also reflected souring sentiment on big tech companies. Investors increasingly doubt whether massive AI investments will pay off quickly.
Software stocks have fallen recently. Analysts downgraded outlooks for the U.S. tech sector.
Analyst Outlook
Twenty-seven Wall Street analysts maintain a consensus Moderate Buy rating on Apple. The group includes 17 Buy ratings, nine Hold ratings, and one Sell rating from the past three months.
Their average price target of $306.89 suggests 17.25% upside from current levels. Trading volume hit 3.3 million shares versus a 49 million average.
The stock traded between $260.18 and $275.72 during Thursday’s session. Apple’s market capitalization stands at $3.8 trillion with a 0.40% dividend yield.
The post Apple (AAPL) Stock Tumbles 5% on Siri Setback and Regulatory Heat appeared first on Blockonomi.
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