Published on . Prices and market conditions may have changed since then.
- Apple stock price is under pressure despite posting forecast-beating earnings last week. We discuss this and its outlook in the coming days.
Apple stock price’s post-earnings decline continued on Tuesday as concerns over a tariff war took center stage. The stock closed the session down by 3.39% and has lost 4.8% of its value since the company announced its earnings for the quarter ended December 2024.
Last week, US President Donald Trump announced 10% tariffs on imports from China, where Apple (NASDAQ: AAPL) produces most of its products. In addition, the company reported a significant decline in its sales in China during the last quarter, a factor that might be exacerbated by the tariff war.
Apple’s revenues rose by 4% on a yearly basis to $124.3 billion, about 127 million above midian forecasts. However, its free cash flow declined by $10 billion to $29.9 billion, which could put a strain on its growth plans, especially as the AI competition heats up.
The decline in iPhone sales in China will likely continue puttingdownward pressure on Apple stock price in the near-term. The company reported an 11% decline in its flagship product to $18 billion in China, with total global sales coming at $69.14 billion, about $2 billion below the forecast figure.
Despite the headwinds in China, Apple reported strong growth in its services segment and expects the pattern to yield “low double-digit” growth rate in the current quarter. In addition, a 46.9% growth in gross margin in the Q1 2025 quarter affirms the likelihood of a strong show this year. These factors augur well for Apple stock price in the current quarter. However, the near-term momentum will likely oscillate around tariff talk.
What was the closing price of AAPL on 1/17/2024
Apple stock price hit an intraday high of $232.29, ten sessions ago, on 1/17/2024. Tuesday’s session saw the stock hit an intraday high of $231.83. Therefore, the $230-$233 range is likely to be an accumulation zone in the near-term.
Apple Stock Price Prediction
The momentum on Apple stock price signals that the sellers are currently in control. That will likely see a continuation of the price action below the pivot mark at $228.40. The first support is likely to be at $226.00. However, an extended control will break below that level and potentially test the second support at $224.60.
On the other hand, moving above $228.40 will shift the momentum to the upside. In that case, the first resistance on AAPL could come at $229.90. A break above that level will invalidate the upside narrative. In addition, a stronger momentum could propel it higher and encounter the second hurdle at $231.75.
