Apple Shares Rise 6.4%, Outperforming Peers Amid Tech Selloff
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy AAPL?
Source: stocktwits
- Strong Sales Boost: Apple reported a 23% year-over-year increase in iPhone sales last week, driven by robust demand for the iPhone 17 lineup, with projected sales growth of 13% to 16% in the March quarter, surpassing Wall Street's 10% expectation, thereby enhancing investor confidence.
- Cautious Capital Expenditure: Apple plans to increase capital expenditures by only 2.3% to $13 billion, a drop in the ocean compared to the combined forecast of over $620 billion from Amazon, Microsoft, Alphabet, and Meta, indicating a prudent approach that may support its future financial stability.
- Market Sentiment Shift: While retail investors and analysts remain optimistic about Apple's prospects, recent market selloffs have led to a shift in retail sentiment, reflecting concerns over the high price-to-earnings ratio (32.1) and low growth, which could impact short-term stock performance.
- AI Collaboration Outlook: Apple's partnership with Google to power upcoming AI features is expected to debut at the Worldwide Developers Conference in June, and combined with strong iPhone 17 demand and a recovery in the Chinese market, it further elevates market optimism for Apple.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAPL is 299.69 USD with a low forecast of 230.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Analyst Rating
19 Buy
11 Hold
2 Sell
Moderate Buy
Current: 276.490
Low
230.00
Averages
299.69
High
350.00
Current: 276.490
Low
230.00
Averages
299.69
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Apple's Earnings Exceed Expectations, iPhone Sales Surge
- Strong Financial Results: Apple reported a 16% year-over-year sales increase for Q1 2026, reaching $143.8 billion, surpassing the company's forecast of 10% to 12% growth, indicating robust market demand and business resilience.
- Surge in iPhone Sales: iPhone revenue grew by 23% year-over-year, setting new sales records across all regions, driven by the successful launch of the iPhone 17, with sales growth expected to continue at 13% to 16% in the current quarter.
- Active Device Count: Apple now boasts 2.5 billion active devices, creating significant monetization opportunities in its high-margin services segment, which is projected to enhance the company's profits and margins as service revenue increases.
- Optimistic Long-Term Outlook: Despite facing legal challenges and tariff issues, Apple demonstrates a strong business model, as historical precedents show these challenges have not led to catastrophic outcomes for tech giants, suggesting continued growth momentum ahead.
See More
Apple Scales Back Virtual Health Coach Plans
- Plan Reduction: Apple has reportedly scaled back its virtual health coach initiative, codenamed Mulberry, indicating a strategic reevaluation of its approach to the rapidly growing wellness services market, which may impact its competitive edge in health tech.
- Feature Restructuring: While the overall initiative is being downsized, Apple plans to roll out some AI features initially intended for the virtual coach individually within its Health app, which could affect user experience and market acceptance.
- Market Reaction: This shift may raise investor concerns regarding Apple's long-term strategy in health tech, particularly as the company seeks to maintain its market leadership through innovation amidst increasing competition.
- Strategic Adjustment: This decision reflects Apple's cautious approach in navigating the complexities of the health services market, potentially influencing its future product development and market positioning.
See More
Apple Shares Rise 6.4%, Outperforming Peers Amid Tech Selloff
- Strong Sales Boost: Apple reported a 23% year-over-year increase in iPhone sales last week, driven by robust demand for the iPhone 17 lineup, with projected sales growth of 13% to 16% in the March quarter, surpassing Wall Street's 10% expectation, thereby enhancing investor confidence.
- Cautious Capital Expenditure: Apple plans to increase capital expenditures by only 2.3% to $13 billion, a drop in the ocean compared to the combined forecast of over $620 billion from Amazon, Microsoft, Alphabet, and Meta, indicating a prudent approach that may support its future financial stability.
- Market Sentiment Shift: While retail investors and analysts remain optimistic about Apple's prospects, recent market selloffs have led to a shift in retail sentiment, reflecting concerns over the high price-to-earnings ratio (32.1) and low growth, which could impact short-term stock performance.
- AI Collaboration Outlook: Apple's partnership with Google to power upcoming AI features is expected to debut at the Worldwide Developers Conference in June, and combined with strong iPhone 17 demand and a recovery in the Chinese market, it further elevates market optimism for Apple.
See More
US Stocks Plunge as Tech Sector Leads Decline
- Tech Sector Decline: Qualcomm's (QCOM) forecast of weaker-than-expected Q2 revenue led to an over 8% drop in its stock, triggering a sell-off across the tech sector, with the Nasdaq 100 index hitting a 2.5-month low, indicating waning investor confidence in technology stocks.
- Weak Labor Market Signals: Challenger's report revealed a staggering 117.8% year-over-year increase in job cuts for January, totaling 108,435, the highest for January since 2009, while initial jobless claims rose by 22,000 to 231,000, highlighting vulnerabilities in the US labor market that could hinder economic recovery.
- Bitcoin Plunge: Bitcoin (^BTCUSD) plummeted over 12% to a 1.25-year low, reflecting deepening negative momentum in the cryptocurrency market, with approximately $2 billion flowing out of Bitcoin ETFs in the past month, signaling a decline in investor confidence.
- Earnings Season Impact: Despite 150 S&P 500 companies set to report earnings this week, market focus on economic data intensifies, with S&P 500 earnings expected to grow by 8.4% in Q4, yet overall market sentiment remains suppressed by recent economic weakness.
See More
Amazon's Capital Expenditure Forecast Surges
- Capex Surge: Amazon forecasts its capital expenditures to exceed $200 billion this year, marking over a 50% increase from last year, yet this announcement led to an over 11% drop in its stock price during after-hours trading despite strong results.
- Industry-Wide Spending: The five largest U.S. tech companies are projected to spend over $630 billion on data centers, AI development, and other capacity-enhancing expenditures, a figure that surpasses the GDP of countries like Singapore or Israel, reflecting strong confidence in future growth but also raising market concerns.
- Market Reaction: The Nasdaq 100 index has already declined by 3.9% this week and is on track for its worst performance since April last year, as investors express doubts about whether high spending will yield future returns, leading to a broad sell-off in tech stocks.
- Analyst Perspectives: Despite the bearish market sentiment, Wall Street analysts overwhelmingly recommend buying into Big Tech stocks, indicating confidence in the sector's long-term prospects, particularly for Amazon and Alphabet, which retail sentiment considers extremely bullish.
See More
Apple vs. Costco: Analyzing Investment Choices
- Apple's Brand Power: Apple is renowned for its simple and elegant designs, with the latest iPhone 17 series driving strong consumer demand, resulting in $42.1 billion in net income and $143.8 billion in revenue for Q1 2026, reflecting a robust 29% profit margin and significant pricing power.
- Strong Cash Flow: Apple's consistent free cash flow provides management with ample funds for dividends and share repurchases, enhancing investor confidence and the company's financial stability.
- Costco's Economic Resilience: Costco excels in any economic environment, with same-store sales growing 5.9% in fiscal 2025 and 6.4% in Q1 2026, demonstrating its ability to thrive amid global pandemic and inflation pressures, with a nearly 90% membership renewal rate.
- Low-Price Strategy Advantage: Costco's bulk purchasing allows it to maintain low prices despite a limited product assortment, and favorable negotiations with suppliers enable consumers to enjoy everyday low prices, further strengthening customer loyalty and market competitiveness.
See More
Apple's Earnings Exceed Expectations, iPhone Sales Surge
- Strong Financial Results: Apple reported a 16% year-over-year sales increase for Q1 2026, reaching $143.8 billion, surpassing the company's forecast of 10% to 12% growth, indicating robust market demand and business resilience.
- Surge in iPhone Sales: iPhone revenue grew by 23% year-over-year, setting new sales records across all regions, driven by the successful launch of the iPhone 17, with sales growth expected to continue at 13% to 16% in the current quarter.
- Active Device Count: Apple now boasts 2.5 billion active devices, creating significant monetization opportunities in its high-margin services segment, which is projected to enhance the company's profits and margins as service revenue increases.
- Optimistic Long-Term Outlook: Despite facing legal challenges and tariff issues, Apple demonstrates a strong business model, as historical precedents show these challenges have not led to catastrophic outcomes for tech giants, suggesting continued growth momentum ahead.
See More
Apple Scales Back Virtual Health Coach Plans
- Plan Reduction: Apple has reportedly scaled back its virtual health coach initiative, codenamed Mulberry, indicating a strategic reevaluation of its approach to the rapidly growing wellness services market, which may impact its competitive edge in health tech.
- Feature Restructuring: While the overall initiative is being downsized, Apple plans to roll out some AI features initially intended for the virtual coach individually within its Health app, which could affect user experience and market acceptance.
- Market Reaction: This shift may raise investor concerns regarding Apple's long-term strategy in health tech, particularly as the company seeks to maintain its market leadership through innovation amidst increasing competition.
- Strategic Adjustment: This decision reflects Apple's cautious approach in navigating the complexities of the health services market, potentially influencing its future product development and market positioning.
See More
Apple Shares Rise 6.4%, Outperforming Peers Amid Tech Selloff
- Strong Sales Boost: Apple reported a 23% year-over-year increase in iPhone sales last week, driven by robust demand for the iPhone 17 lineup, with projected sales growth of 13% to 16% in the March quarter, surpassing Wall Street's 10% expectation, thereby enhancing investor confidence.
- Cautious Capital Expenditure: Apple plans to increase capital expenditures by only 2.3% to $13 billion, a drop in the ocean compared to the combined forecast of over $620 billion from Amazon, Microsoft, Alphabet, and Meta, indicating a prudent approach that may support its future financial stability.
- Market Sentiment Shift: While retail investors and analysts remain optimistic about Apple's prospects, recent market selloffs have led to a shift in retail sentiment, reflecting concerns over the high price-to-earnings ratio (32.1) and low growth, which could impact short-term stock performance.
- AI Collaboration Outlook: Apple's partnership with Google to power upcoming AI features is expected to debut at the Worldwide Developers Conference in June, and combined with strong iPhone 17 demand and a recovery in the Chinese market, it further elevates market optimism for Apple.
See More
US Stocks Plunge as Tech Sector Leads Decline
- Tech Sector Decline: Qualcomm's (QCOM) forecast of weaker-than-expected Q2 revenue led to an over 8% drop in its stock, triggering a sell-off across the tech sector, with the Nasdaq 100 index hitting a 2.5-month low, indicating waning investor confidence in technology stocks.
- Weak Labor Market Signals: Challenger's report revealed a staggering 117.8% year-over-year increase in job cuts for January, totaling 108,435, the highest for January since 2009, while initial jobless claims rose by 22,000 to 231,000, highlighting vulnerabilities in the US labor market that could hinder economic recovery.
- Bitcoin Plunge: Bitcoin (^BTCUSD) plummeted over 12% to a 1.25-year low, reflecting deepening negative momentum in the cryptocurrency market, with approximately $2 billion flowing out of Bitcoin ETFs in the past month, signaling a decline in investor confidence.
- Earnings Season Impact: Despite 150 S&P 500 companies set to report earnings this week, market focus on economic data intensifies, with S&P 500 earnings expected to grow by 8.4% in Q4, yet overall market sentiment remains suppressed by recent economic weakness.
See More
Amazon's Capital Expenditure Forecast Surges
- Capex Surge: Amazon forecasts its capital expenditures to exceed $200 billion this year, marking over a 50% increase from last year, yet this announcement led to an over 11% drop in its stock price during after-hours trading despite strong results.
- Industry-Wide Spending: The five largest U.S. tech companies are projected to spend over $630 billion on data centers, AI development, and other capacity-enhancing expenditures, a figure that surpasses the GDP of countries like Singapore or Israel, reflecting strong confidence in future growth but also raising market concerns.
- Market Reaction: The Nasdaq 100 index has already declined by 3.9% this week and is on track for its worst performance since April last year, as investors express doubts about whether high spending will yield future returns, leading to a broad sell-off in tech stocks.
- Analyst Perspectives: Despite the bearish market sentiment, Wall Street analysts overwhelmingly recommend buying into Big Tech stocks, indicating confidence in the sector's long-term prospects, particularly for Amazon and Alphabet, which retail sentiment considers extremely bullish.
See More
Apple vs. Costco: Analyzing Investment Choices
- Apple's Brand Power: Apple is renowned for its simple and elegant designs, with the latest iPhone 17 series driving strong consumer demand, resulting in $42.1 billion in net income and $143.8 billion in revenue for Q1 2026, reflecting a robust 29% profit margin and significant pricing power.
- Strong Cash Flow: Apple's consistent free cash flow provides management with ample funds for dividends and share repurchases, enhancing investor confidence and the company's financial stability.
- Costco's Economic Resilience: Costco excels in any economic environment, with same-store sales growing 5.9% in fiscal 2025 and 6.4% in Q1 2026, demonstrating its ability to thrive amid global pandemic and inflation pressures, with a nearly 90% membership renewal rate.
- Low-Price Strategy Advantage: Costco's bulk purchasing allows it to maintain low prices despite a limited product assortment, and favorable negotiations with suppliers enable consumers to enjoy everyday low prices, further strengthening customer loyalty and market competitiveness.
See More
