Three of the Magnificent Seven –– Apple (AAPL), Alphabet (GOOG,GOOGL), and Tesla (TSLA) –– are lagging behind the other four. Apple is the second largest laggard, down 10% year to date. The company has seen four quarters in a row of declining iPhone sales, weakness in Chinese markets, a hefty EU fine, and a major patent dispute. Analysts have taken note of the tech giant's challenges, with several firms downgrading the stocks or removing them from their buy lists. Needham & Co. Senior Media & Internet Analyst Laura Martin joins Yahoo Finance to discuss Apple's performance and her optimism about a turnaround. Martin points to Apple's installed base of two billion devices: "What they have is sort of consumer lock-in for that group of devices...Maybe demand is slower in China, but they have these really wonderfully wealthy demographics already using their ecosystem. So they need to add advertising to drive revenue growth, its a $600 billion a year business and they do $2 billion a year in it. They need to add advertising to get growth back and also advertising has 80% profit margins. They need to figure out a way to add more services and software that they can get more subscription revenue, which is a 60% margin, to get more revenue per device." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino

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