Apple stock drops 5% as Siri AI delays hit iOS 26.4 and FTC probes Apple News bias

Apple faced a devastating convergence of setbacks on Wednesday, February 12, 2026, as the company’s stock dropped 5%, marking its worst single-day performance since April 2025. The iPhone maker closed at $261.73, erasing all gains for the year and leaving shares down nearly 4% in 2026.

The crisis stems from three simultaneous challenges: internal testing failures with the long-delayed AI-powered Siri redesign, which was originally announced at WWDC 2024 and has now been pushed back multiple times due to performance issues; regulatory scrutiny from the Federal Trade Commission regarding alleged political bias in Apple News curation policies; and broader market concerns about excessive AI capital expenditure across the tech sector. Together, these factors created a perfect storm that wiped billions off Apple’s market valuation in a single trading session.

🚨 Apple’s Triple Crisis

Stock Plunge, AI Delays & Federal Scrutiny Converge

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-5%

Stock Drop

Worst Day Since April 2025

🤖

Months Delayed

Siri AI Update Pushed Back

⚖️

FTC

Regulatory Pressure

Bias Allegations Investigated

💰

$261.73

Closing Price

February 12, 2026

The Perfect Storm

Stock Market Collapse

Apple’s shares plummeted 5% on Wednesday, February 12, 2026, wiping out the year’s gains and leaving the stock down nearly 4% for 2026. The drop marked the company’s worst single-day performance since April 2025, with shares closing at $261.73. This dramatic decline came amid growing concerns about heavy AI spending across the tech sector. On February 10, UBS downgraded the U.S. tech sector to neutral, citing “software uncertainty” and heavy capital expenditure, which contributed to sell-off pressure across major technology companies including Apple.

Apple Investor Relations 2026 Product Launches

Siri AI Development Crisis

Apple’s long-awaited artificial intelligence overhaul of Siri has hit critical roadblocks during internal testing. Originally announced at WWDC 2024 and slated for spring 2025, the update has been delayed multiple times. Engineers discovered severe issues including slow response times, failed query processing, and accuracy problems. The features originally planned for iOS 26.4 in March may now be scattered across iOS 26.5 in May and iOS 27 in September. On January 12, 2026, Apple announced that Google’s Gemini models would power the new Siri, but testing revealed the system sometimes falls back to ChatGPT instead of using the Gemini-powered technology, causing further complications.

Apple Newsroom ChatGPT Updates

Federal Trade Commission Investigation

On February 12, 2026, FTC Chair Andrew Ferguson sent a letter to Apple CEO Tim Cook demanding a comprehensive review of Apple News’ terms of service and curation policies. The letter cited reports that Apple News was systematically promoting left-wing outlets while suppressing conservative content, potentially violating federal consumer protection laws. Ferguson stated in the official FTC press release that any move by Apple News to suppress or promote articles based on ideological or political viewpoints may violate the FTC Act if found inconsistent with Apple’s terms of service or consumer expectations. The regulatory pressure adds complexity to Apple’s challenges during an already difficult period.

FTC Official Press Release iOS 26.3 Security Update

Timeline of Troubles

June 10, 2024

Apple announced the redesigned AI-powered Siri at WWDC 2024, promising features like photo finding, contact card editing, and app-to-app task automation. The initial launch was targeted for spring 2025. CEO Tim Cook described Apple Intelligence as a “new chapter in Apple innovation” that would “transform what users can do with our products.”

January 12, 2026

Apple confirmed partnership with Google, revealing that Gemini AI models will power the new Siri. The company stated, “After careful evaluation, Apple determined that Google’s AI technology provides the most capable foundation for Apple Foundation Models.” On January 28-29, Apple beat Q1 2026 earnings expectations but announced Siri would take longer than expected to deliver.

February 11-12, 2026

Bloomberg reported Siri testing encountered significant problems with slow performance and query processing failures. Internal testing revealed the iOS 26.4 March release was no longer viable, with features now planned for iOS 26.5 and iOS 27. On February 12, FTC Chair Ferguson sent a letter to Tim Cook regarding Apple News bias allegations, stating the company must ensure curation is “consistent with its terms of service and representations made to consumers.”

February 12, 2026

Apple stock crashed 5% on Wednesday, the worst single-day decline since April 2025. Trading volume surged as investors reacted to the combination of AI delays, regulatory scrutiny, and sector-wide concerns about excessive AI spending. Shares closed at $261.73, erasing all 2026 gains and leaving the stock down nearly 4% year-to-date.

Market Impact Severity

High Impact: 85%

Low Moderate Severe

The developments discussed in this coverage occurred between June 2024 and February 12, 2026. Apple’s stock closed at $261.73 on Wednesday, February 12, 2026, following a 5% decline. The FTC letter to CEO Tim Cook was dated February 12, 2026, and addressed concerns about Apple News curation policies.

The Siri AI redesign was first presented at WWDC 2024 with an initial spring 2025 target. Following internal testing issues, the features have been rescheduled for potential release in iOS 26.5 and iOS 27. Apple’s partnership with Google for Gemini AI integration was announced on January 12, 2026. Additional information about Apple’s product updates and investor relations can be accessed through the company’s official channels. The FTC’s official statement regarding the Apple News investigation was published February 11, 2026.