Apple Inc. (NASDAQ:AAPL) stock fell more than 7% in premarket trading Friday as investors locked in profits despite the company’s better-than-expected fiscal third-quarter results. The decline came even as Nasdaq futures rose 1.39% and S&P 500 futures gained 0.62%.
The stock is also testing its 50-day moving average after retreating from July highs. That level could determine whether the recent pullback remains part of a longer-term uptrend or develops into a deeper correction.
Apple reported fiscal third-quarter revenue of $109.42 billion and earnings of $2.02 per share, topping Wall Street estimates of $108.65 billion and $1.89, respectively. The company also said its active installed base reached a record high and called it its strongest June quarter ever.
The stock has rallied sharply in recent months. Analysts said investors are now focusing on margins, valuation, iPhone demand and services growth after the earnings beat.
Analyst Flags Siri AI, China And Memory Costs As Key Watch Points
Evercore ISI analyst Amit Daryanani said Apple’s fiscal third-quarter results were modestly better than expected, with stronger-than-anticipated iPhone revenue and a slight gross margin beat offset by softer services growth.
He said investors will now shift their focus to whether Apple’s AI strategy, particularly the rollout of Siri AI, can sustain more than 20% iPhone revenue growth and support further upside for the stock.
Daryanani also said China remains a key market to watch as Apple expands AI features through partners including Alibaba Group Holding Limited (NYSE:BABA) and Baidu, Inc. (NASDAQ:BIDU). He added that investors may question whether recent iPhone demand reflects purchases brought forward ahead of expected price increases next year.
On margins, Daryanani said rising memory costs remain an important risk. He said greater certainty around memory pricing through long-term supply agreements would improve investor confidence and help reduce concerns about future gross margin pressure.
Ahead of Apple’s earnings report, Odyssey Capital’s Jason Snipe told CNBC that the company was expected to deliver solid results, with iPhone revenue likely to rise about 20% and services revenue projected to grow 14%. However, he said rising memory costs and recent product price increases could pressure margins.
Snipe noted that Apple shares had gained about 22% year to date and 15% over the past month while trading at roughly 36 times forward earnings. He said investors would closely watch whether consumers continued to absorb higher prices as Apple appeared likely to pass on some of its higher costs.
Apple’s Stability Is Attracting Investors
MoffettNathanson co-founder and senior analyst Craig Moffett told CNBC that Apple’s recent rally reflects shifting investor sentiment rather than a dramatic change in the company’s fundamentals.
He said investors have rotated into Apple as a defensive technology stock while growing more cautious about whether heavy artificial intelligence spending by companies such as OpenAI, Anthropic and Meta Platforms, Inc. (NASDAQ:META) will generate sufficient returns.
He also described Apple as a “low-risk stock at a time of high volatility,” saying investors increasingly see it as a safe place to park capital amid uncertainty surrounding AI-related spending.
The stock carries a consensus Buy rating with an average analyst price forecast of $327.81. Recent analyst actions include:
- Morgan Stanley raised its price forecast to $364 while maintaining an Overweight rating on July 23.
- HSBC upgraded the stock to Buy and raised its price forecast to $366 on July 17.
- KeyBanc downgraded Apple to Underweight with a $250 price forecast on July 14.
Technical Analysis
Apple is trading about 4.5% below its 20-day simple moving average of $324.35 but remains near its 50-day simple moving average of $309.30. That level could attract buyers if the longer-term uptrend remains intact.
The stock continues to trade well above its 100-day simple moving average of $288.15 and its 200-day simple moving average of $277.65. The bullish golden cross, formed in September 2025 when the 50-day moving average crossed above the 200-day moving average, also remains in place.
Momentum indicators have improved. The MACD remains above its signal line, suggesting selling pressure has eased even as the stock consolidates.
- Key resistance: $317.50
- Key support: $287.50
ETF Exposure
Apple remains one of the largest holdings in several major exchange-traded funds:
- Schwab U.S. Large-Cap Growth ETF (NYSE:SCHG): 9.40%
- iShares S&P 100 ETF (NYSE:OEF): 9.83%
- T. Rowe Price Blue Chip Growth ETF (NYSE:TCHP): 9.51%
Large inflows or outflows in these funds can influence trading activity in Apple shares.
Price Action
AAPL Stock Price Activity: Apple shares were down 7.23% at $309.33 during premarket trading on Friday, according to Benzinga Pro data.
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