Apple (AAPL) Stock Trades Up, Here Is Why

What Happened?

Shares of iPhone and iPad maker Apple (NASDAQ:AAPL) jumped 3.3% in the afternoon session after investor optimism grew ahead of its earnings report, fueled by positive analyst commentary citing strong iPhone 17 sales. 

JPMorgan boosted its price target on the stock from $305 to $315, pointing to stronger-than-expected sales of the new iPhone and a more efficient cost structure. 

Similarly, Morgan Stanley noted that high demand for the iPhone 17 could lead Apple to beat its own revenue expectations, projecting overall revenue at $139.5 billion for the quarter. The bank also maintained its Overweight rating on the shares. 

Further positive news included reports of a multiyear partnership with Alphabet to use its Gemini technology to power Siri and other Apple Intelligence features.

After the initial pop the shares cooled down to $255.34, up 3% from previous close.

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What Is The Market Telling Us

Apple’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 10 months ago when the stock dropped 9.1% on the news that President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%. 

Apple, in particular, stood out as especially vulnerable due to its entrenched reliance on production in Asia, especially its China operations. The reciprocal tariffs pushed effective rates on all Chinese imports above 50%. With many of its manufacturing hubs now subject to elevated tariff burdens, Apple faces fresh challenges. 

Shifting production isn't something you do over the weekend. It takes years and a ton of cash, and even then, there could be more unexpected challenges. This could include factory buildouts, retraining workers, and moving equipment, which could quickly become a logistical headache. So, in the short term, this could hit Apple's margins, mess up delivery timelines, and create significant earnings uncertainty.

Apple is down 5.8% since the beginning of the year, and at $255.34 per share, it is trading 10.8% below its 52-week high of $286.19 from December 2025. Investors who bought $1,000 worth of Apple’s shares 5 years ago would now be looking at an investment worth $1,783.

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