Apple Inc. (AAPL) and Epic Games have been involved in fierce legal battles over the past few years. The trial began in 2021 when US District Judge Yvonne Gonzalez Rogers ruled that Apple would encourage app developers to direct users to alternative, non-Apple payment options in breach of its 2021 injunction. As a result, Apple forced developers to notify users about payment methods other than the app store.
However, the case is still ongoing as Apple is accused of violating its court orders. Last week, Apple (AAPL) filed a notice of appeal in the 9th Circuit in response to a federal court banning commission collection of transactions completed outside the App Store. Apple Stock hasn’t made too many hits with the latest legal process, but some experts worry that the fight could be done if it was in favor of Epic Games.
The US stock market rebounded in a big way this week. Certainly, bullish sentiment is beginning to arrive as geopolitical tensions ease and trade deals are on the brink of imminent. Over the past week, the S&P 500 has managed to erase 2025 losses driven by an increasingly unstable year with so many gains. It has made great profits on some of Wall Street’s top tech stocks. However, saving one megacap company may not be enough.
Outside of its growing legal battle with Epic Games, Apple is also dealing with potential losses in revenue of $2 billion. In 2022, Alphabet paid Apple $20 billion, allowing Google to become its default browser for all products. Payments are not subject to public information, but exist as all the revenues of the company. Specifically, these funds will move directly towards Apple’s revenue. That’s why executives are so frightening that they can lose it.
Eddy Cue had recently testified in an ongoing alphabet exclusive case. Then, as you can imagine, $20 billion came out. In his testimony, Cue pointed out that he believes that AI-powered searches are likely to replace traditional Google-type engines. Therefore, the prospect of paying a portion of the transaction may no longer make sense to the alphabet. If you don’t have any payments from Alphabet anymore, Apple may be in trouble and stock will drop.
Investors are mixing up how to approach Apple (AAPL) stocks following the latest wave of news. Most of the time, panic sellers suggest that they are not the answer, but AAPL predictions have been revised. The stock is definitely a shopping experience, but its price forecasts are falling despite maintaining a potential valuation.
