The technology behemoth is expected to post profit and revenue growth that severely lags the industry when it reports its fiscal third-quarter results on Thursday after the market closes.
Apple shares are down almost 17 this year. Compounded by the lack of a strong artificial intelligence strategy, high exposure to tariff risk and regulators targeting its highly profitable relationship with Google, it's hard to see them rebounding anytime soon - especially as they continue to trade at a premium valuation.
"Apple's embarrassing AI shows how it has lost its mojo with innovation, and the lack of innovation speaks to the lack of revenue growth, and that speaks to why we don't see upside in the stock," said Peter Andersen, founder and chief investment officer of Andersen Capital Management.
"It is valued like a growth stock, but I'm very sceptical about the potential for a significant inflection in growth, and I think it will eventually lose that premium."
Analysts expect the company to report a 2.4 rise in quarterly profits on a 4.1 gain in revenues, according to data compiled by Bloomberg. The overall tech sector's anticipated earnings growth is 16.8 on a 13 jump in revenue, according to Bloomberg Intelligence.