Apple (AAPL.US) stock price decline, Buffett reducing holdings questionable AI new technology can reverse the situation?

Apple (AAPL.US) stock has been declining for the fifth consecutive day, dropping nearly 12% since the beginning of 2024, while the broader market continues to rise. In response to this, Rosenblatt Securities analyst Barton Crockett has given Apple a "Neutral" rating with a target price of $189. The analyst stated that Apple (AAPL.US) is at a "crossroads" and is facing various challenges, including regulatory pressure, weak revenue trends, and a lack of mainstream new products. At the same time, Mizuho analyst Jordan Klein pointed out that if Wall Street discovers that Warren Buffett's Berkshire Hathaway (BRK.A.US) is "reducing its massive Apple holdings," the situation could worsen. Despite Buffett's recent reduction of about 1% in holdings, Klein suspects that more selling may be imminent or already underway. Buffett is one of Apple's largest shareholders, and according to Klein, he has "profited handsomely" from his holdings. Considering his ownership of approximately 905 million shares and the recent unfavorable comments on the stock, Klein stated that he "would not be surprised" if Buffett is selling stock. In response, Klein recommended that Apple investors begin selling some shares and instead focus on other hardware stocks such as Dell Technologies (DELL.US), Western Digital Corporation (WDC.US), and Silicon Motion Technology Corporation (SIMO.US). Apple to unveil new AI features to attract market attention Klein expects that Apple may continue to lag behind until it previews its plans for generative artificial intelligence at the June WWDC developer conference. At the same time, Rosenblatt's Crockett is also anticipating the conference. In a report to clients, he stated, "If Apple can introduce inspiring new AI features, this may help alleviate the current situation." Apple CEO Tim Cook has hinted at an upcoming announcement regarding generative AI, with many expecting it to be announced at WWDC, but it's currently unclear how Apple plans to use AI. Crockett pointed out that on one hand, the company's development in "large language models" or generative applications is not significant, and its R&D spending is lower than its peers. He noted that Meta Platforms (META.US), Facebook's parent company, spent $38 billion on R&D last year and is expected to spend between $30 billion and $37 billion this year, while Alphabet Inc. (GOOGL.US), Google's parent company, spent $45 billion on R&D in 2023 with capital expenditures expected to be "significantly higher" than last year's $32 billion. In comparison, Apple spent $30 billion on R&D in the last fiscal year with capital expenditures of $11 billion. Crockett stated, "In terms of R&D and capital spending on AI, Alphabet and Meta are likely far ahead of Apple." Given the relative expenditure range, he expressed doubt on whether Apple can compete with companies like Alphabet and Microsoft (MSFT.US) in generative AI subscription sales. He wrote, "We question whether Apple will promote its AI processing capabilities over Microsoft and other companies' applications, thereby making the value of AI to Apple primarily in driving iPhone and Mac sales." A fitting example is that Apple touted its new MacBook Air series as the "world's best AI consumer laptop" on Monday.