Apple Inc. is facing potential regulatory challenges as Chinese regulators consider investigating its App Store fees and policies, amid ongoing US-China tech tensions. Despite Wedbush reiterating its "Outperform" rating for Apple with a 12-month price target of $325, the market remains cautious. The report suggests that while the risk from these regulatory challenges is contained, the broader geopolitical landscape, including US tariffs and trade negotiations, continues to influence Apple's market dynamics. CEO Tim Cook's strategic management of US-China relations is seen as a key factor in navigating these challenges, with expectations of resumed growth in China by the June quarter.
The Direxion Daily AAPL Bear 1X Shares (AAPD) ETF rose 2.01% to $16.73 as of 8:00 AM on Wednesday, February 5.