Last week, Apple (AAPL) reported quarterly earnings that exceeded analyst expectations:

→ Earnings per share: $2.40 (expected: $2.35)
→ Revenue: $124.3 billion (expected: $124.2 billion)

Zacks analysts called the results “favourable,” yet Apple’s stock movement tells a different story:

→ On 31 January, shares opened with a bullish gap around $247, briefly improving AAPL’s weak start to the year.
→ By 3 February, the stock closed near $227, marking a 7.4% decline over just two sessions.

The downward pressure on AAPL may be due to:

→ Shifting sentiment around U.S. tech leadership in AI, following the success of Chinese startup DeepSeek’s free chatbot.
→ Trump’s tariffs, particularly the new 10% levy on Chinese imports, which could impact Apple’s future performance.

According to BofA Securities analysts:

→ The impact on profits should be “limited,” as around 80% of Apple devices can be manufactured outside China.
→ AAPL remains attractive, with a “buy” rating and a $265 price target, supported by stable cash flow, strong earnings, and AI-driven opportunities.

Technical analysis of Apple (AAPL) stock shows that the price has been forming a long-term upward channel (marked in blue) since summer 2024, with the following key observations:

→ Bearish perspective: The price has sharply dropped from the upper half of the blue channel (as shown by the arrow), testing a potential bearish breakout of the previous uptrend (marked in black) from late 2024.

→ Bullish perspective: The lower boundary of the channel, around $222, may serve as a key support level, potentially preventing further declines.

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