![]() Turning to Wall Street, AAPL stock has a Moderate Buy consensus rating based on 22 Buys, eight Holds, and no Sell ratings. Is AAPL Stock a Buy, According to Analysts? ![]() Further, the Wearable, Home, and Accessories unit posted revenue of $8.28 billion, a slight but important increase from $8.08 billion in the year-ago quarter. While sales of $81.8 billion were in line with analysts’ expectations, earnings per share clocked in at $1.26, beating the consensus EPS target of $1.20.Īs well, Apple CEO Tim Cook stated that the company achieved a milestone by ending Q3 with over a billion subscriptions. On the contrary, Apple recently delivered solid results for its third quarter of Fiscal 2023. In fairness, investors shouldn’t walk away from this discussion believing that AAPL stock is doomed. Considering that AAPL stock presently carries a price of $189.46, the smart money is baking in the possibility of disappointment. In other words, traders expect Apple to hit $120 more than they expect it to reach $265. However, the IV of AAPL options with a strike price of $120 stands at 0.61. Further, this indicator takes into account expiration dates.Ĭonspicuously, the IV of AAPL options with a strike price of $265 sits at 0.38. A volatility smile is a graph that plots the strike price and implied volatility (IV) of a particular asset’s options contracts. Second, the “volatility smile” of AAPL stock indicates that traders see greater risk to the downside than they do the probability of movements to the upside. Cumulatively, more traders are actively betting that AAPL stock will slip rather than rise. On the other side of the equation, open interest for OTM puts stands at 92,151 contracts. Specifically, the open interest for out-of-money (OTM) call options comes out to 62,435 contracts. With options transactions implying risk mitigation, retail investors would do well to approach AAPL cautiously.įirst, TipRanks’ options chain for contracts expiring on June 21, 2024, provides a big warning to market participants. However, the smart money genuinely appears to be concerned about Apple stumbling over the next several months. The Smart Money Points to Risk MitigationĪgain, history has shown that betting against AAPL stock tends to be a fool’s errand. However, with consumer debt skyrocketing, households may, as a matter of prudence, elect to abstain from excessive purchases. Of course, AAPL stock could blossom if the response to the iPhone 15 is robust. However, with headwinds like stubbornly elevated inflation taking their toll, consumers may decide to skip out on nice-to-have, unnecessary tech upgrades. Following the COVID-19 crisis, the economy rebounded rather impressively. Therefore, the iPhone 15 must be exceptionally compelling to move the needle. With the company attaining about 75% of China’s smartphone market share, for example, growth in that nation will be difficult to achieve. Unfortunately, Apple may become a victim of its own success, thus hurting AAPL stock. As Evercore analyst Amit Daryanani stated, “The durability of iPhone growth in recent years has surprised investors as the consensus view a few years ago was that the iPhone had peaked.” While the smartphone industry appears to have peaked, the iPhone continues to show “an impressive ability to gain share both domestically and abroad,” added Daryanani. With the global consumer economy struggling, the tech giant really needs to fire on all cylinders. While analysts usually put Apple under pressure to deliver, the stakes are much higher this time. As TipRanks reporter Marty Shtrubel noted, observers expect the iPhone 15 to be unveiled during the annual event. ![]() Rumored to be on tap for the upcoming showcase is the latest iteration of Apple’s flagship product iPhone. However, this time around, the occasion may represent a broader economic litmus test. ![]() ![]() Typically, such events offer a showcase to demonstrate Apple’s supremacy in the smart products realm. On September 12, the world’s attention will again focus on consumer technology stalwart Apple ( NASDAQ:AAPL) as it unveils its newest products. ![]()
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