The shares of Apple Inc (NASDAQ:AAPL) are down 1.4% to trade at $254.71 at last check, despite the Big Tech giant announcing a top- and bottom-line win for the fiscal first quarter with help from record iPhone sales. The losses come after CEO Tim Cook noted the strain on the memory chip market as AI data centers continue to expand, which could push the cost of consumer electronics higher.
No fewer than five analysts chimed in with price-target hikes in response, including Melius Research to $350 from $345. Brokerages lean bullish on AAPL, with 24 of 42 firms in coverage sporting a "buy" or better rating. Plus, the 12-month consensus target price of $288 is an 11.5% premium to current levels.
Despite today's slide, AAPL is on track to snap an eight-week losing streak with its best weekly performance since October. While the shares have cooled from their Dec. 3, record high of $288.62 and are now struggling with resistance at the 20-day moving average, they still sport a 24.4% nine-month lead.
Short-term options traders lean bullish. This is per Apple stock's Schaeffer's put/call open interest ratio (SOIR) that stands in the 2nd percentile of readings from the past 12 months.
Drilling down to today's options activity, 198,000 calls and 116,000 puts have crossed the tape -- triple the overall options volume typically seen at this point. The most active contract is the weekly 1/30 260-strike call, which expires at the close.
