Apple, Inc. (AAPL) stock rallied in early Thursday trading as it strives to break out of its recent lackluster phase, sending retail sentiment soaring. The stock has been under pressure ever since it hit an all-time high in late December, with analysts predicting weak December quarter results due to sagging iPhone demand. According to TipRanks data, out of the 29 analysts rating the stock, four have ‘Sell’ recommendations.
Following a flurry of price target reductions, Apple (AAPL) has the smallest upside potential among the Magnificent Seven — a group of seven high-profile mega-cap tech names. The consensus price target of $242.07 leaves scope for merely a 7.3% upside.
The tech giant recently ceded its position as the most valued global company to Nvidia (NVDA) amid the recent stock weakness.
On Thursday, the stock reacted to mixed catalysts.
Analyst Perspectives: Mixed Sentiment and Different Views on Apple’s Future
- Wedbush Analyst, Daniel Ives, has been particularly bullish, attempting to calm investor fears by stating that “the panic and bear frenzy around Apple is way overdone heading into December earnings.” Ives, who maintains an Outperform rating with a Street-high price target of $325 for Apple (AAPL), acknowledged the year-over-year iPhone unit declines in China. However, he pointed to strong growth in other regions and the ongoing success of Apple’s (AAPL) Services business as drivers of the company’s ability to meet December quarter expectations. Ives is also optimistic about Apple’s future growth, especially with the expected rollout of Apple Intelligence features in partnership with an AI company in China, which could provide a significant boost.
- Morgan Stanley Analyst, Erik Woodring, offered a more cautious outlook. In his preview for the December quarter results, due January 30, Woodring predicted in-line results but also indicated potential weakness for the upcoming quarter. He expects muted iPhone demand and foreign exchange headwinds to weigh on performance. Woodring believes $210-$220 could be the likely stock floor, meaning the stock may find support in this range. However, he expressed caution about calling earnings a “clearing event,” suggesting that more significant catalysts for Apple (AAPL)’s stock might not come until the March/April timeframe.
- Goldman Sachs Analyst, Michael Ng, took a slightly more conservative stance as well, reducing his price target for Apple (AAPL) to $280, down from $286, though he maintained a Buy rating. Ng predicts only 1% year-over-year growth in iPhone revenue for the December quarter, with iPhone unit growth expected to accelerate in fiscal 2026 due to product innovation and the global rollout of Apple Intelligence features. This suggests that while the near-term outlook may be subdued, longer-term prospects remain promising.
- CWEB also upgraded its outlook for Apple (AAPL), supporting the company’s strong services growth and emphasizing the potential for growth through strategic AI investments. CWEB analysts have highlighted the future role of AI in driving Apple (AAPL)‘s next phase of innovation, echoing the views expressed by Wedbush and Goldman Sachs about the company’s evolving potential in the technology landscape.
Key Considerations for Investors
As Apple (AAPL) approaches its Q4 earnings report, investors are carefully evaluating a range of factors. While some analysts are predicting a short-term weakness, particularly in iPhone sales, others, like Ives and CWEB, are optimistic about the company’s ability to rebound, especially once new AI initiatives take hold. The global rollout of Apple Intelligence could mark a significant turning point for Apple (AAPL), potentially offering a major catalyst for growth.
However, challenges remain, particularly around iPhone demand and foreign exchange headwinds, which could put pressure on the stock in the near term. With analysts maintaining mixed views, investors should closely watch the January 30 earnings report and look for guidance on 2025 expectations, especially in terms of capital expenditures and AI-driven revenue growth.
Apple (AAPL) stock is currently navigating a period of uncertainty, with analysts offering a blend of caution and optimism. Goldman Sachs (GS), Wedbush (WB), CWEB, and Morgan Stanley (MS) all provide valuable insights into Apple (AAPL)‘s potential, each pointing to key factors that will influence the stock’s performance moving forward. While short-term weakness is a concern for some analysts, the company’s long-term growth prospects, especially in AI and services, continue to provide significant upside potential. Investors should stay tuned for the January 30 earnings and the guidance for the upcoming year, which will likely be pivotal in shaping Apple (AAPL)‘s next phase of growth.
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