Wall Street analysts have mixed opinions on Apple (AAPL), especially as the stock lags behind other big tech names. While trade tensions and potential tariffs add pressure, most analysts are focusing more on Apple’s core business. The tech company’s stock has dropped nearly 20% this year, even though most of the Magnificent Seven stocks helped the S&P 500 (SPY) rise by more than 6% in May. Despite this, some analysts still believe that Apple’s history of stable performance and reliable financial results gives it long-term strength.
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Indeed, five-star Bank of America analyst Wamsi Mohan and his team view Apple as a safe investment that usually matches or slightly beats expectations. They highlighted Apple’s strong share buyback program and steady dividend payments as reasons why investors stay loyal. These buybacks, which are worth tens of billions of dollars each year, help increase earnings per share, even if sales don’t grow. This financial strategy gives Apple a solid cushion during tough times and keeps it attractive to long-term investors. Still, not everyone is bullish.
In fact, some analysts say that Apple may be running out of major new ideas. They question whether the company can come up with the next big product or if it will just continue making small updates to existing ones. Bears also worry that Apple’s fast-growing services business may be slowing down. At the same time, others warn that new AI technology, like projects from former Apple designer Jony Ive and OpenAI (MSFT), could change how people use tech and weaken the iPhone’s role. While tariffs are a concern, the bigger issue for skeptics is whether Apple can keep up with the next wave of innovation.
Is Apple a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 17 Buys, eight Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $228.65 per share implies 12.5% upside potential.
