Is the Apple stock pullback a buy opportunity? Analysts see near term upside

Apple shares extended a rare period of weakness this week, slipping 0.5% to $259.04 on Thursday and marking the stock’s seventh consecutive session of declines dating back to Dec. 30.

While the pullback has been relatively modest — Apple shares are down about 5.4% over the streak — the persistence of the losses has drawn investor attention.

According to Dow Jones Market Data, the run represents Apple’s longest losing streak since an eight-day skid in May.

Friday trading offered tentative relief, with the stock hovering near the flatline as investors looked to see whether Apple could avoid another red close.

Analysts see catalysts ahead of earnings

Despite the recent weakness, analysts at Evercore said there are near-term factors that could help stabilise and potentially lift the stock.

The firm reiterated its Outperform rating on Apple and raised its price target to $330 from $325 in a research note published Friday.

The upgrade was driven by expectations of strong financial performance for the quarter ended in December, which Apple is scheduled to report on Jan. 29.

“Our checks coupled with industry data points suggest that there is near-term upside to AAPL estimates driven by robust iPhone demand + minimal memory cost headwind,” Evercore analysts led by Amit Daryanani wrote.

On the demand front, Apple had previously guided investors to expect revenue growth of 10% to 12% for the December quarter.

That would mark the company’s first double-digit revenue growth quarter since fiscal 2022.

Evercore believes Apple may have exceeded even those expectations.

The firm cited strong demand across North America, China and India, with only modest weakness in Europe.

It also noted that sales appear to have skewed toward higher-end iPhone models, a trend that typically supports higher average selling prices and margins.

“Demand has also skewed towards the higher-end models,” Daryanani wrote.

Alphabet overtakes Apple in market value

Apple’s stock rout has coincided with a notable shift in market leadership.

Alphabet has overtaken Apple to become the world’s second-most-valuable publicly traded company.

Alphabet closed Wednesday’s session with a market capitalisation of $3.89 trillion, edging past Apple’s $3.85 trillion.

It marked the first time Alphabet has surpassed Apple in market value since 2019.

The gap widened Thursday as Alphabet shares rose about 1%, lifting its market capitalisation to roughly $3.94 trillion, while Apple’s slipped to around $3.84 trillion.

As of Friday, Alphabet’s valuation stood near $3.98 trillion.

Succession discussions add to investor focus

Adding another layer of scrutiny, Apple is also navigating internal discussions around leadership succession.

According to a report from The New York Times published Thursday, hardware engineering chief John Ternus has emerged as the leading internal candidate to eventually succeed Chief Executive Officer Tim Cook.

The report said Cook, 65, has signalled to senior leaders that he wants to reduce his workload after more than a decade at the helm.

People familiar with the discussions told the newspaper that if Cook steps down as chief executive, he would likely transition into the role of chairman of the board.

Ternus, 50, joined Apple in 2001 and currently serves as senior vice president of hardware engineering.

Those close to the process described him as having a management style similar to Cook’s — measured, collaborative and closely attuned to Apple’s global supply chain.