Shares of Apple Inc (NASDAQ:AAPL) are down 3.4% to trade at $326.95 this morning, despite the tech giant reporting better-than-expected adjusted earnings of $2.10 per share on revenue of $114.5 billion. Disappointing iPad and accessories sales, weaker-than-expected revenue from China, and a lackluster margin forecast are weighing on the stock, however.
Heightening memory demand is expected be a contributing factor to supply constraints in the current quarter. This also marked the first report under new CEO John Ternus. Several brokerages have given mixed updates in response, including a price-target cut to $360 from $366 out of HSBC and a price-target hike to $400 from $375 at Argus Research.
Analyst sentiment was split heading into today, with 22 of the 40 brokerages covering Apple stock sport a "buy" or "strong buy" rating. This leaves plenty of room for downgrades, should this bullish sentiment begin to unwind.
Options traders, on the other hand, are beginning to wax pessimistic. APPL sports a 10-day put/call volume ratio of 1.08 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX). This ratio ranks in the highest percentile of its annual range.
Apple stock is extending a pullback from its late-October record high of $351.73, now headed for its third-straight daily drop and lowest close since early September. Today's selloff is testing support at the ascending 80-day moving average, with AAPL headed for its worst daily drop in over a month. The Magnificent 7 name remains up 22% for 2026.
