Apple (AAPL) is set to announce its quarterly earnings today after the market closes, drawing significant attention from traders who anticipate volatility in the company’s stock. Current options trading indicates that investors expect shares to experience a movement of approximately 4% in either direction by the end of Friday’s session, with the stock currently priced around $209. Should this expectation materialize, the stock could surge above $217, marking its highest point since a notable decline earlier this year following tariff announcements from the Trump administration. On the downside, a drop could see shares fall to $200, similar to their position a month ago. Notably, Apple stock has faced a 17% decrease in value so far in 2025.
Historically, Apple has experienced an average post-earnings fluctuation of about 2%, with the stock declining in each of the last four earnings reports. For instance, after the May announcement, the stock fell by 4% due to warnings from CEO Tim Cook about potential financial impacts from tariffs.
Adding to the anticipation, analysts from Morgan Stanley have highlighted the potential for the Trump administration to impose Section 232 tariffs on Apple, related to national security, which could have significant ramifications for the tech giant.
Despite the possible challenges, the forecast for Apple’s upcoming earnings is optimistic. Analysts expect to see growth in sales and profits. According to data from Visible Alpha, nine brokers hold “buy” or equivalent recommendations for the stock, while only one has rated it a “hold” and another a “sell.” The average price target among these analysts stands around $235, suggesting a potential 12% gain above Wednesday’s closing price.
Additionally, investors will be keen to hear any updates regarding Apple’s investments in Apple Intelligence, particularly in light of ongoing issues with Siri and its limited availability in the Chinese market.
This earnings report could be a defining moment for Apple, not just in terms of stock performance but also in setting the tone for its future strategies amid external pressures. With analysts largely bullish on the company’s prospects, there remains cautious optimism among investors that Apple will navigate these challenges successfully.