In China, Apple’s second largest market, iPhone sales fell 18% in the December ending quarter, according to Bloomberg.

Apple faced two downgrades ahead of earnings, with analysts citing weak iPhone demand. China continues to be a headwind for sales.

Doug and Lee examined Apple's decreasing stock performance, pointing out as main causes of investor unhappiness dismal iPhone 16 sales in China, AI losses, and criticism about the company's lack of recent innovation.

U.S. stocks rose as Trump's second term begins, with the S&P 500 up 0.9% and Dow gaining 538 points. Positive earnings reports and eased Treasury yields boosted investor confidence.

Nvidia stock rose early Wednesday after President Donald Trump sent another signal to markets that artificial intelligence would be a priority under his new administration. The absence of Nvidia CEO Jensen Huang at the inauguration Monday stuck out as Big Tech CEOs thronged to the event.

Apple (AAPL), and the stock has lost over 11% so far, extending its drawdown from all-time highs to over 14%. It also lost its status as the world’s largest company to Nvidia (NVDA), whose share have looked unstoppable over the last few years.