Analyst Says She's 'Suspicious' About 'Sustainability' of Apple (AAPL) Stock Uptrend - Here's Why

We recently published 10 Stocks Everyone’s Discussing Amid Latest Earnings Season. Apple Inc. (NASDAQ:AAPL) is one of the stocks everyone's discussing.

Katie Stockton, Fairlead Strategies founder and managing partner, commented on Apple’s latest stock outperformance during a program on CNBC. She believes $260 is the “final resistance” level for Apple Inc (NASDAQ:AAPL) and the stock could be expected to stay above this mark for further gains in the future. However, the analyst said she’s “suspicious” about the sustainability of the recent uptrend in Apple shares.

“Well, we don’t know honestly, but when we look from a top-down perspective, it does look a little bit fragile to us, and that’s based in part on market breadth. We’ve seen a real pullback in market breadth. And of course, we have seen a downtick in momentum. A lot of the 20-day moving averages are rolling over, and we were using those as one of our primary risk metrics. We’ve seen a breakout in the VIX as well. So for the S&P 500 below its 50-day moving average, we would expect risk to increase, and that’s really not that far away. So we’re a little sort of suspicious of the sustainability of the uptrend at this stage without a consolidation phase.”

Mar Vista U.S. Quality Strategy stated the following regarding Apple Inc. (NASDAQ:AAPL) in its third quarter 2025 investor letter:

“Apple Inc. (NASDAQ:AAPL) shares rebounded in Q3 2025 as investor concerns over both tariffs and the early adoption of its generative AI product, Apple Intelligence, eased. Attention shifted instead to the favorable resolution of Alphabet’s DOJ trial, seen as a positive for both Apple and Alphabet, and to healthy initial demand for the fall launch of the iPhone 17.

We continue to view Apple as a competitively advantaged business, anchored by the strength of its ecosystem. With over 2 billion active devices and more than 1 billion paying subscribers, Apple benefits from a loyal customer base and a growing stream of high-margin, recurring services revenue. This stable cash flow enables continued investment in innovation, even during periods of cyclical softness. We believe Apple remains well positioned to lead in the emerging category of AI-enabled edge devices.”

While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.