Apple Stock Shrinks 3.39% Amid Tariff Concerns; Analysts Predict Short-Term Volatility Ahead

StockInvest.us, 1 week ago

Apple Technical Analysis

Apple Inc. (NASDAQ: AAPL) closed at $228.01 on February 3, 2025, registering a notable decline of 3.39% as tariff concerns weighed on the stock. The selling pressure pushed the stock near its immediate support level at $224.23, while resistance is noted at $229.86. A high trading volume of 70.08 million, significantly above the average of 50.07 million, suggests heightened investor activity, potentially due to recent tariff news. The current RSI of 44 indicates that the stock is approaching oversold territory, which might imply a potential rebound. However, the MACD of -9.73 underscores prevailing bearish momentum in the near term. The 50-day moving average of $240.23 is above the current closing price, and likewise, the stock remains above the 200-day moving average of $219.69, signaling possible long-term strength although facing short-term volatility.

Fundamental Analysis

Apple's current market cap stands at $3.43 trillion, emphasizing its dominant position in the tech sector. The company's P/E ratio of 36.19 is relatively high, reflecting investor expectations for growth. The EPS (TTM) of $6.30 suggests solid earnings performance, though the recent decline in stock price indicates investors' concerns over external factors like tariffs. The next earnings announcement on May 1, 2025, may provide clarity on the impact of global trade issues. With a trailing twelve months (TTM) dividend yield of 0.43% and a next dividend date on February 13, 2025, the stock offers modest income for investors. The DCF valuation of $147.12 implies that the stock may currently be overvalued from a fundamental perspective.

News Impact

Recent headlines highlight potential price hikes due to increased tariffs on goods made in China, which could pressure Apple's margins and consumer demand. However, this geopolitical risk is balanced by Apple's historical resilience and strategic adjustments in supply chain management. Although the news also touched on regulatory challenges in the EU, these are unlikely to materially affect Apple's core business operations in the short term.

Apple Short-Term Prediction

For the next trading day and the upcoming week, heightened volatility is expected as the market digests geopolitical developments. The stock might test its support levels but could potentially see a technical rebound given the near-oversold RSI.

Intrinsic Value and Long-Term Potential

Despite near-term headwinds, Apple's positional advantages in innovation, ecosystem strength, and consumer loyalty offer robust long-term growth potential. The consensus target price around $251.70 aligns with analyst projections for moderate appreciation backed by strategic product launches and emerging market opportunities. However, the intrinsic DCF value suggests a cautionary stance due to current overvaluation concerns.

Overall Evaluation

Given the technical indicators, fundamental metrics, and prevailing market conditions, AAPL is categorized as a 'Hold' candidate. While short-term uncertainties persist, the long-term growth prospects remain intact, provided the company effectively navigates tariff implications and continues innovation-driven expansion.

Check full Apple forecast and analysis here.