TLDRs;
- Apple shares snapped a rare losing streak ahead of its January 29 earnings report.
- Evercore raised its price target, citing strong premium iPhone demand and scale advantages.
- Rising memory costs and China sales trends remain key risks for upcoming quarters.
- Investors await updates on iPhone momentum, services growth, and “Apple Intelligence” progress.
Apple shares edged higher at the end of last week, snapping a rare multi-day losing streak and stabilizing investor sentiment ahead of the company’s closely watched earnings report scheduled for January 29.
The stock closed near $259.37, up about 0.1% on the session, a modest move that nevertheless marked a shift after several consecutive declines that had raised questions about near-term momentum.
While the gain itself was small, the timing is notable. Apple is entering earnings season amid heightened scrutiny of iPhone demand, rising component costs, and intensifying competition in artificial intelligence. At the same time, several major Wall Street firms have reiterated confidence in the company’s longer-term story, with some becoming even more optimistic on valuation and growth prospects.
A Rare Losing Streak Ends
Apple’s pullback earlier in the month stood out because extended losing runs have been relatively uncommon for the stock in recent years, given its scale, liquidity, and strong institutional support. The recent weakness coincided with broader market volatility and renewed debate over whether hardware demand, particularly for iPhones in China, is cooling more than expected.
The slight rebound suggests investors may be reassessing those fears as the earnings date approaches. Historically, Apple’s stock has often found support in the weeks leading up to results, as traders position for updates on product cycles, services growth, and capital returns. This time, the focus is even sharper due to the company’s push into generative AI features, branded as “Apple Intelligence,” and how quickly these capabilities can translate into user engagement and device upgrades.
Evercore Reaffirms Bullish View
Adding to the constructive tone, Evercore ISI recently reiterated its “outperform” rating on Apple and raised its price target to $330, keeping the stock among its top picks in large-cap technology. The firm pointed to resilient demand for premium iPhone models and Apple’s ability to defend margins through its scale, long-term supplier contracts, and pricing power.
Analysts at Evercore also argued that Apple’s ecosystem strength, spanning hardware, software, and services, provides a buffer against near-term cost inflation, particularly as memory prices and other key components trend higher. In their view, even if bill-of-materials expenses rise, Apple is better positioned than most peers to absorb or offset those pressures without materially eroding profitability.
Costs, China, and Competition
Not all signals are uniformly positive. Rising RAM and storage prices have emerged as a potential headwind for the March quarter and beyond. Reports indicate Apple is working closely with major Asian suppliers to secure capacity and manage costs, but sustained inflation in memory markets could still weigh on margins, especially if competitive dynamics limit the company’s ability to pass higher costs on to consumers.
China remains another focal point. Investors are looking for confirmation that iPhone sales in the region are stabilizing after a period of softer momentum and increased competition from domestic brands. Any signs of renewed growth could support bullish forecasts, while continued weakness may reinforce concerns about market share and upgrade cycles.
At the same time, Apple’s strategy to bring more components in-house, including modems, has ripple effects across its supply chain. Some analysts have flagged this shift as a potential drag on certain suppliers and a source of short-term execution risk, even if it strengthens Apple’s control over its hardware roadmap in the long run.
What the Earnings Could Reveal
When Apple reports on January 29, investors will be listening closely for three main signals: the trajectory of iPhone demand, the pace of services revenue growth, and concrete progress on “Apple Intelligence.” The company’s commentary on how AI features will be integrated across devices and regions could play a key role in shaping expectations for the second half of the year.
Valuation is another underlying theme. Apple continues to trade at a premium to much of the broader market, reflecting confidence in its cash generation, buyback program, and ecosystem lock-in. However, that premium also means the stock is sensitive to any disappointment, whether in unit sales, margins, or the perceived competitiveness of its AI roadmap relative to rivals.
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