AAPL Shares Drop Amid Trumps Tariffs Despite Strong Earnings
Last week, Apple (AAPL) reported quarterly earnings that exceeded analyst expectations:
Earnings per share: $2.40 (expected: $2.35)
Revenue: $124.3 billion (expected: $124.2 billion)
Zacks analysts called the results favourable, yet Apples stock movement tells a different story:
On 31 January, shares opened with a bullish gap around $247, briefly improving AAPLs weak start to the year.
By 3 February, the stock closed near $227, marking a 7.4% decline over just two sessions.
The downward pressure on AAPL may be due to:
Shifting sentiment around U.S. tech leadership in AI, following the success of Chinese startup DeepSeeks free chatbot.
Trumps tariffs, particularly the new 10% levy on Chinese imports, which could impact Apples future performance.
According to BofA Securities analysts:
The impact on profits should be limited, as around 80% of Apple devices can be manufactured outside China.
AAPL remains attractive, with a buy rating and a $265 price target, supported by stable cash flow, strong earnings, and AI-driven opportunities.
Technical analysis of Apple (AAPL) stock shows that the price has been forming a long-term upward channel (marked in blue) since summer 2024, with the following key observations:
Bearish perspective: The price has sharply dropped from the upper half of the blue channel (as shown by the arrow), testing a potential bearish breakout of the previous uptrend (marked in black) from late 2024.
Bullish perspective: The lower boundary of the channel, around $222, may serve as a key support level, potentially preventing further declines.
Read more: https://fxopen.com/blog/en/oa-aapl-shares-drop-amid-trumps-tariffs-despite-strong-earnings/
Text source: Forex Trading Blog
