Apple Stock Under Fire on Siri AI Delay, Censorship Allegations, Investor Trim
Apple’s rally unravelled sharply as Siri integration delay, regulatory scrutiny, censorship allegations and mounting AI spending concerns...
Quick overview
- Apple's stock experienced a sharp decline of over 5% due to regulatory scrutiny and political controversy surrounding its Apple News platform.
- Institutional investors have begun to reduce their exposure to Apple, reflecting growing caution amid heightened scrutiny and concerns over AI spending.
- Despite strong financial performance, including a 16% revenue increase, investor confidence is wavering due to regulatory risks and the capital intensity of AI investments.
- The market is demanding greater clarity on returns from companies engaged in large-scale AI spending, putting pressure on even established firms like Apple.
Live AAPL Chart
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Apple’s rally unravelled sharply as Siri integration delay, regulatory scrutiny, censorship allegations and mounting AI spending concerns combined to shake investor confidence.
Rally Reverses as Political Controversy Erupts
Apple’s stock, which had enjoyed a strong rally last week, abruptly reversed course on Thursday, plunging more than 5% in a sharp selloff. The trigger was not earnings disappointment or a product miss, but political controversy.
The Federal Trade Commission (FTC) issued a warning letter to Apple over its Apple News platform, raising concerns about potential political bias. FTC Chair Andrew Ferguson called on CEO Tim Cook to investigate whether Apple News is “censoring conservative news outlets” while promoting content from left-leaning publications.
In a letter published on social media, Ferguson stated that there have been reports alleging systematic promotion of left-wing sources and suppression of conservative outlets within the Apple News app. Apple has not publicly commented on the letter.
For investors, the development introduces regulatory and reputational risks at a time when technology companies are already under heightened scrutiny. The accusation—regardless of its ultimate merit—adds another layer of political sensitivity to a company that has historically tried to position itself above partisan disputes.
Siri Upgrade Postponed
The Siri upgrade has been delayed once more, though, as a result of new technological issues that have slowed down the effort. According to Bloomberg, Apple is expected to launch the initial version of Siri 2.0 in May 2026 and roll out further features in September 2026.According to experts, investors and consumers may be let down by this gradual introduction of AI features.
Institutional Investors Trim Exposure
The controversy coincided with a broader rotation out of mega-cap technology stocks. Investors have recently begun reallocating capital toward other parts of the S&P 500, reducing exposure to the market’s largest names.
Recent disclosures suggest that several institutions trimmed their Apple holdings. NBT Bank reduced its position by 5.3%, according to MarketBeat. Campbell & Co cut its exposure by approximately 70.6%, while Gamco also scaled back, as reported by The Globe and Mail.
While some of these moves may reflect routine portfolio rebalancing around dividend dates, the timing reinforces the impression that investors are becoming more cautious. After a prolonged period of outperformance, Apple’s valuation leaves little room for unexpected controversy or execution missteps.
Technical Picture Continues to Weaken
Technically, Apple’s chart shows that the stock fell below both its 50-day (yellow) and 100-day (green) simple moving averages during the late 2025 tech selloff, but the $240 level held convincingly, helped by the 200 SMA (red) which acted as support.
AAPL Chart Daily – Returning to the 50 SMA
The stock rebounded strongly in late January and on Friday AAPL soared above $280, clearly breaking above the 50 daily SMA (yellow) so AAPL stock approached the early December highs above $288. However, investors seem cautious to make a new record high, so we saw a pullback earlier this week as AI spending costs bring back margin fears, while the new events have tumbled AAPL stock down to $260.
Dividend Stability Offers Limited Cushion
Apple continues to return capital to shareholders, paying $0.26 per share quarterly—equivalent to $1.04 annually. The trailing dividend yield sits at roughly 0.38%, with a payout ratio near 13.15%. Free cash flow per share of approximately $8.36 suggests the dividend is well covered.
However, the yield remains modest relative to other sectors, offering limited downside protection in periods of volatility. For UK investors, additional considerations such as USD income exposure and potential withholding tax further complicate the effective return.
In the current climate, a well-covered dividend may not be sufficient to offset concerns about regulatory risk and capital intensity.
AI Spending Raises Fresh Questions
Adding to the pressure is Apple’s increasingly aggressive push into artificial intelligence. CEO Tim Cook recently described AI as “one of the most profound opportunities of our lifetime,” emphasizing that Apple is embedding AI across its ecosystem.
The company’s acquisition of Israeli startup Q.ai—focused on facial movement interpretation and enhanced human-computer interaction—signals a deeper commitment to advanced AI integration. While strategically aligned with long-term innovation goals, such moves also imply rising research, development, and infrastructure costs.
Investors are beginning to question the pace and scale of AI spending across the technology sector. The capital intensity required to compete in AI—spanning chips, data centers, and specialized talent—has sparked concerns about margin pressure and uncertain monetization timelines.
Some critics argue that the surge in AI investment appears disproportionate to current consumer demand, raising broader questions about return on investment and the long-term commercial viability of certain AI applications.
Strong Results Overshadowed
Ironically, Apple’s underlying financial performance remains robust. In its most recent quarterly report, revenue rose 16% year over year to $143.8 billion, comfortably exceeding expectations. Earnings per share reached $2.84, and net income climbed to $42.1 billion.
The iPhone continued to anchor the business, generating record revenue of $85.3 billion—up more than 20% year over year. Services revenue grew 14% to around $30 billion, reinforcing the strength of Apple’s high-margin recurring income streams.
Yet in today’s market environment, strong backward-looking results are not always enough. Investors are forward-focused, scrutinizing capital allocation decisions, regulatory exposure and strategic execution.
India Policy Support Not Enough to Offset Risks
Apple has also benefited from favorable policy developments in India, where new rules allow foreign companies to supply machinery to contract manufacturers in customs-bonded zones without tax liabilities for five years. The measure supports export-driven manufacturing and strengthens Apple’s supply-chain diversification strategy.
While strategically positive, such developments are long-term structural advantages rather than immediate catalysts. They do little to mitigate near-term concerns surrounding political scrutiny and AI-driven cost escalation.
Market Patience Wears Thin
The broader investment climate has shifted. Markets are no longer rewarding growth narratives without demanding clarity on returns. Companies embarking on large-scale AI spending programs are being held to higher standards of capital discipline.
Apple’s track record of execution and profitability provides some reassurance. However, even industry leaders are vulnerable to valuation resets when new uncertainties emerge. Political allegations, regulatory attention and escalating AI investment costs combine to create a more fragile sentiment backdrop.
For a stock that had recently been setting fresh highs, the sudden 5% drop underscores how quickly confidence can erode. Whether this marks a temporary setback or the beginning of a deeper correction may depend less on Apple’s past performance—and more on how effectively it navigates regulatory scrutiny and justifies its ambitious AI spending in the months ahead.
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