Apple Earnings in Focus! Can AAPL Stock Withstand the Tariff Storm?
Apple (AAPL) is set to report its Q2 earnings on Thursday, May 1, after the market closes. But things aren’t as smooth as they used to be. The truth is, Apple may no longer be the easy, safe investment it once was. With rising geopolitical tensions, tariff uncertainty, and Apple’s relatively slow approach to AI, investors might need to rethink how they see AAPL stock.
Stay Ahead of the Market:
Notably, Wall Street expects earnings to hit around $1.61 per share in Q2, up from $1.53 per share in the same quarter last year.
What’s Next for AAPL Stock?
Apple might beat expectations this quarter. But the real danger is what comes next, the guidance. Investors are more concerned about where the company is headed than where it has been. And right now, that outlook looks shaky. Analysts are already trimming their price targets ahead of earnings, signaling concerns over slowing iPhone demand and weaker sales in China.
If Apple’s guidance disappoints, it could send the stock lower, even if it posts a solid quarter.
Investors Eye Apple’s Strategy to Navigate Tariffs
Apple is deeply rooted in China, with approximately 80% of its production and nearly 90% of iPhones made in Chinese factories. As a result, U.S. tariffs on Chinese imports directly impact Apple’s margins. In response, the company is increasing production in India and Brazil, but these efforts are still far from fully scaling up as long-term solutions.
Overall, in the upcoming earnings, investors will be keen to understand how Apple plans to handle its supply chain and U.S. operations in the face of increasing tariffs.
Analysts Cut Price Targets on AAPL Stock
Wall Street is already showing concern. Multiple top analysts have reduced their price targets on AAPL stock. Yesterday, Bank of America’s five-star-rated analyst Wamsi Mohan lowered its Apple price target from $250 to $240, citing two main concerns: rising supply chain costs due to tariffs and ongoing delays in Apple’s AI developments.
Likewise, top-rated analyst Aaron Rakers from Wells Fargo trimmed his price forecast from $275 to $245 but kept his Buy rating.
Earlier this week, MoffettNathanson’s Craig Moffett lowered his price target from $184 to $141 and kept his Sell rating. He warned of a potential 30% drop in AAPL stock due to ongoing tariff issues.
Is Apple a Buy or Sell Stock?
On TipRanks, AAPL stock has a consensus Moderate Buy rating among 35 Wall Street analysts. That rating is based on 19 Buys, 13 Holds, and three Sells assigned in the last three months. The average AAPL price target of $236.47 implies a 13.5% upside from current levels.
Year-to-date, AAPL stock has declined by over 16%.
Disclaimer & DisclosureReport an Issue