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Plunging Growth Stock Offers a 20% Discount for Immediate Purchase

Plummeting Growth Stock Offering a 20% Discount for Immediate Purchase

Stocks Showing a 20% Drop for Immediate Purchase Opportunity
Stocks Showing a 20% Drop for Immediate Purchase Opportunity

Plunging Growth Stock Offers a 20% Discount for Immediate Purchase

In the ever-evolving world of technology, one company that has consistently stood out is Apple Inc., the maker of the world-famous iPhone, Mac, and iPad. However, the potential of Trump's import tariffs has had a notably negative impact on its stock price and raised concerns about its future growth prospects.

After President Trump announced sweeping reciprocal tariffs, Apple's stock dropped sharply—over 7% in after-hours trading on July 2, 2025. This decline marked the company’s worst one-day loss in almost five years[1]. More broadly, Apple’s stock has been down more than 16% since the start of 2025 amid tariff threats and global tensions affecting investor sentiment[4].

The tariffs threaten a 34% levy on imports from China (on top of the existing 20%) and 32% on goods from Taiwan, which is significant because about 90% of Apple’s manufacturing relies on China and Taiwan[1]. This reliance makes Apple particularly vulnerable to tariff-induced cost increases.

Citigroup analysts estimate that these tariffs could drag Apple’s gross margin down by nine percentage points, a substantial hit given Apple’s gross margin was about 46.9% in the December quarter[1]. This margin compression would pressure Apple's profitability and could force price increases or margin sacrifices.

Despite diversification efforts, Apple remains exposed to supply chain risks tied to China and Taiwan tariffs. CEO Tim Cook has noted monitoring the situation without disclosure of detailed plans[1]. The stock market, initially dismissive of tariff risks expecting Trump to relent, has grown more cautious and pulled back from record highs as the possibility of sustained or higher tariffs becomes real[2].

The tariffs add to uncertainty amid changing leadership within Apple and broader challenges in maintaining product innovation and competitiveness. These factors combined weigh on investor confidence in Apple’s near- and medium-term growth prospects[4].

However, it's important to note that Apple has built a long track record of revenue and profit growth thanks to its flagship products and now has an installed active user base of over 2.2 billion. The current price of Apple shares offers a potential opportunity to set yourself up for victory over the long term.

Though indexes have since rebounded amid signs tariffs won't be as steep and far-reaching as initially announced, bargains on growth stocks remain. The AI market, currently valued at billions, is forecast to top $2 trillion, providing plenty of time for Apple to excel in AI in the years to come.

In addition, Apple's services revenue, due to the number of active users and a broad selection of services from cloud storage to digital entertainment, has been reaching record levels quarter after quarter. This revenue stream is a major driver of revenue today and is expected to continue driving growth for the company over time.

In conclusion, while Trump's import tariffs pose challenges for Apple's growth prospects, the company's strong brand strength, diversifying revenue streams, and potential for AI excellence make it a compelling investment opportunity for those with a long-term perspective.

[1] CNBC (2025). Apple's Stock Takes a Beating After Trump's Tariff Announcement. [online] Available at: https://www.cnbc.com/2025/07/02/apple-aapl-stock-takes-a-beating-after-trump-tariff-announcement.html

[2] MarketWatch (2025). Apple's Stock Plunges as Tariff Fears Mount. [online] Available at: https://www.marketwatch.com/story/apples-stock-plunges-as-tariff-fears-mount-2025-07-02

[3] The Wall Street Journal (2025). Trump's Tariffs Threaten Apple's Profitability. [online] Available at: https://www.wsj.com/articles/trumps-tariffs-threaten-apples-profitability-11625783973

[4] Bloomberg (2025). Apple's Growth Prospects Clouded by Trump's Tariffs. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-05/apples-growth-prospects-clouded-by-trump-s-tariffs

  1. Amid concerns about Apple's future growth due to President Trump's tariffs, investors are considering investing in Apple's stock as a long-term opportunity, given its strong brand and diversifying revenue streams, such as its services and potential AI excellence.
  2. The tariffs on imports from China and Taiwan could cause Apple's gross margin to drop significantly, pushing the company to consider price increases or margin sacrifices to maintain profitability.
  3. The uncertainty around Trump's tariffs, combined with changing leadership within Apple and challenges in maintaining product innovation and competitiveness, are weighing on investor confidence in Apple's near- and medium-term growth prospects, yet the AI market, currently valued in billions and expected to top $2 trillion, offers potential for Apple to excel in the years to come.

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