Apple Stock Faces Pressure Ahead of Earnings Report

Apple Stock Faces Pressure Ahead of Earnings Report

Investors are increasingly betting against Apple’s stock as the iPhone maker's earnings approach. Short interest in Apple has risen to 157 million shares, or 1% of the float, as of December—the highest level since August 2020. This comes as the broader S&P 500 sees an average of 2.8% of shares shorted.

Apple’s stock is down 10% this year, driven by falling iPhone shipments in China, which dropped the company to third place behind Vivo and Huawei. Additionally, the slow rollout of its AI platform, Apple Intelligence, has left analysts skeptical about its ability to boost sales. UBS analysts lowered iPhone sales estimates in January, warning of further challenges for the company.

However, Apple’s upcoming earnings report on January 30 could change the narrative if it beats expectations. Despite the stock trading at 29.3 times forward earnings, 32 out of 51 analysts surveyed by FactSet rate it a buy, with many hoping for a strong rebound. Both shareholders and short sellers will be closely watching the results.