Apple (NASDAQ:AAPL) Shares Down 3.2% – Here’s Why

Apple Inc. (NASDAQ:AAPL)’s share price traded down 3.2% during trading on Friday . The company traded as low as $262.89 and last traded at $264.18. 71,882,892 shares were traded during mid-day trading, an increase of 38% from the average session volume of 51,949,723 shares. The stock had previously closed at $272.95.

Apple News Summary

Here are the key news stories impacting Apple this week:

• Positive Sentiment: Tim Cook teased a “big week” of product launches (new iPhone, iPad, MacBook updates), which typically boosts optimism for unit upgrades and Services/Accessory revenue. Tim Cook Teases Apple Launch
• Positive Sentiment: Analysts and commentators highlight new AI-enabled smart devices and “AI companions” as potential catalysts for Wearables and Services growth — a structural upside to Apple’s revenue mix. These New AI Smart Devices Could Boost Apple Stock
• Positive Sentiment: Apple TV and Netflix will co-broadcast the Formula 1 Canadian Grand Prix and share content, expanding Apple’s content reach and supporting Services engagement. Apple and Netflix team up to air Formula 1
• Positive Sentiment: Reports say Apple is in advanced talks to launch Apple Pay / a digital wallet in India, which could materially expand Payments & Services revenue over time. Apple in talks with banks to start payment service in India
• Positive Sentiment: Strategists note a “Rolex effect” for resilient consumer brands — Apple’s strong loyalty may insulate it from some AI disruption, supporting its premium pricing power. How to Fight AI? The ‘Rolex Effect’
• Neutral Sentiment: Apple asked a judge to dismiss a proposed class-action accusing it of exaggerating Siri AI progress; the defense move may limit legal uncertainty but litigation remains unresolved. Apple seeks dismissal of fraud lawsuit
• Neutral Sentiment: Shareholders voted down a proposal for a China manufacturing risk report — governance outcome with limited immediate financial impact but relevant for long-term supply-chain oversight. Shareholders reject China report proposal
• Neutral Sentiment: Increased investor attention and analyst write-ups (Zacks, Seeking Alpha comparisons vs. Adobe) show AAPL is in focus as the AI narrative evolves; useful for sentiment tracking but not an immediate fundamental change. Investors Heavily Search Apple
• Negative Sentiment: Macro and sector pressure: reports flag rising hedging/put activity, Magnificent Seven net selling and a Nasdaq stress gauge near 2022 levels — these market forces are weighing on AAPL despite company-specific positives. Nasdaq stress gauge hits 2022 levels
• Negative Sentiment: AI talent movement: OpenAI’s hires of researchers who previously led Apple model work highlight competitive pressure for AI talent and could be perceived as a long-term headwind for Apple’s AI roadmap. OpenAI hires former Apple-linked AI researcher
• Negative Sentiment: Analyst/market skepticism: pieces warning about Magnificent Seven selling and downgrade commentary on Apple’s negotiating/innovation dynamics add bearish analyst pressure that can amplify intraday selling. Magnificent Seven warning

Wall Street Analyst Weigh In

AAPL has been the subject of a number of analyst reports. Jefferies Financial Group set a $276.47 price target on Apple and gave the stock a “hold” rating in a research report on Monday, January 26th. Moffett Nathanson raised their target price on shares of Apple from $241.00 to $270.00 and gave the stock a “neutral” rating in a report on Wednesday. TD Cowen reaffirmed a “buy” rating and set a $325.00 price target on shares of Apple in a research note on Friday, January 30th. UBS Group reissued a “buy” rating on shares of Apple in a research report on Tuesday, February 3rd. Finally, Citigroup reissued a “buy” rating and issued a $315.00 price objective (down from $330.00) on shares of Apple in a research note on Tuesday, January 20th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $293.41.

Apple Stock Down 3.2%

The company has a market cap of $3.88 trillion, a P/E ratio of 33.40, a price-to-earnings-growth ratio of 2.45 and a beta of 1.09. The company has a debt-to-equity ratio of 0.87, a quick ratio of 0.94 and a current ratio of 0.97. The business’s fifty day moving average is $264.85 and its two-hundred day moving average is $258.95.

Apple (NASDAQ:AAPL) last issued its earnings results on Thursday, January 29th. The iPhone maker reported $2.84 EPS for the quarter, topping analysts’ consensus estimates of $2.67 by $0.17. Apple had a net margin of 27.04% and a return on equity of 159.94%. The business had revenue of $143.76 billion for the quarter, compared to analyst estimates of $138.25 billion. The company’s quarterly revenue was up 15.7% compared to the same quarter last year. During the same period last year, the company posted $2.40 earnings per share. Equities analysts predict that Apple Inc. will post 7.28 EPS for the current year.

Apple Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, February 12th. Shareholders of record on Monday, February 9th were given a dividend of $0.26 per share. The ex-dividend date of this dividend was Monday, February 9th. This represents a $1.04 dividend on an annualized basis and a yield of 0.4%. Apple’s payout ratio is 13.15%.

Hedge Funds Weigh In On Apple

Several institutional investors have recently made changes to their positions in AAPL. Sellwood Investment Partners LLC raised its stake in Apple by 110.9% in the third quarter. Sellwood Investment Partners LLC now owns 135 shares of the iPhone maker’s stock worth $34,000 after buying an additional 71 shares in the last quarter. ROSS JOHNSON & Associates LLC raised its position in shares of Apple by 1,800.0% in the 1st quarter. ROSS JOHNSON & Associates LLC now owns 190 shares of the iPhone maker’s stock worth $42,000 after acquiring an additional 180 shares in the last quarter. Timmons Wealth Management LLC purchased a new stake in shares of Apple during the 4th quarter worth $69,000. Nexus Investment Management ULC lifted its stake in shares of Apple by 333.3% during the 2nd quarter. Nexus Investment Management ULC now owns 260 shares of the iPhone maker’s stock worth $53,000 after purchasing an additional 200 shares during the last quarter. Finally, LSV Asset Management bought a new stake in Apple during the fourth quarter valued at about $65,000. Hedge funds and other institutional investors own 67.73% of the company’s stock.

Apple Company Profile

Apple Inc (NASDAQ: AAPL) is a multinational technology company headquartered in Cupertino, California, founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. The company designs, develops and sells consumer electronics, software and services. Over its history Apple has evolved from personal computers to a broad portfolio that spans mobile devices, wearables, home entertainment and digital services.

Apple’s principal hardware products include the iPhone smartphone, iPad tablet, Mac personal computers, Apple Watch wearable devices and a range of accessories such as AirPods and HomePod.