Apple Shares Face Pressure Ahead of Earnings Report

A wave of selling is hitting Apple's stock as the company approaches a pivotal earnings release. With retail investors exiting their positions and analysts adjusting their forecasts, all eyes are on Wednesday, January 29, when the iPhone maker will disclose its quarterly results. The atmosphere is tense despite high expectations for the period.

Market experts are divided on the equity's near-term prospects. UBS maintains a neutral stance with a $280 price target. In contrast, Goldman Sachs continues to defend the stock, citing a $320 target and viewing the approximate five percent decline since the start of the year as a buying opportunity. The current consensus price target among analysts sits around $281, implying a potential upside of roughly 13 percent from recent levels.

This caution exists even as Apple's fundamental business strength persists. The corporation concluded 2025 as the global smartphone market leader, commanding a 20 percent share. Furthermore, development is reportedly underway on a more advanced AI chatbot, internally codenamed "Campos," which may serve as a Siri replacement and could be based on Google's Gemini technology. Supply chain sources also suggest a foldable iPhone model could arrive in late 2026 or 2027.

Retail Investors Lead the Exodus

Data from J.P. Morgan reveals a significant shift in investor behavior. Since July 2025, retail investors have been net sellers of Apple shares to the tune of $4 billion. This makes Apple the only member of the "Magnificent 7" group of stocks to experience capital outflows during this timeframe. For comparison, Nvidia attracted $15 billion in inflows, while Tesla saw $6 billion.

Should investors sell immediately? Or is it worth buying Apple?

The driving force behind this move appears to be a preference for pure-play AI infrastructure investments. Many market participants currently view Apple as not being directly enough involved in the artificial intelligence boom. A symbolic illustration of this shift is Nvidia having now supplanted Apple as the largest customer of chip manufacturer TSMC.

In a related move, Citigroup reduced its price target for Apple from $330 to $315. The bank cited rising memory chip costs, which could pressure margins despite anticipated strong demand for the upcoming iPhone 17. Citigroup, however, retained its "Buy" rating on the shares.

Wednesday's Report Holds the Key

Wall Street anticipates first-quarter 2026 revenue to land between $136.7 billion and $139.2 billion. This would represent year-over-year growth of 10 to 12 percent and mark a new record, significantly surpassing the $124.3 billion reported in Q1 2025. Earnings per share are projected to be $2.67.

The market's reaction will likely hinge not just on the past quarter's performance but, more critically, on the company's forward guidance. Positive signals regarding AI integration and the trajectory of the high-margin services business could potentially halt the current selling pressure. Conversely, weak forecasts may intensify the downward momentum, especially given the presently cautious mood among retail shareholders.