Shares of Apple AAPL fell 2.3% to just below $107 today. This marks a 20% drop from its recent high of $134.54, meaning that the stock has slipped into the dreaded “bull market.” With the New Year less than two weeks away, will Apple be able to recover in 2016?
The biggest concern that investors seem to have with Apple is whether it has any more room to grow. With shares growing an average of 28% a year over the last decade, a flat year like 2015 is shaping up to be is quite concerning.
Apple has been struggling with shrinking phones sales—this is the first year since the release of the iPhone that total sales will go down—and sluggish new products such as the Apple Watch, which failed to take off.
What’s even more concerning is the fact that Apple’s large-cap tech rivals are not having the same problems. Despite the razor-thin margins of e-commerce, Amazon AMZN has doubled in value on the back of its cloud computing platform. Microsoft MSFT, up 19% on the year, has shifted its strategy in the face of declining demand for PCs.