There is no shortage of questions facing the US stock market throughout the first three months of the year. With increased macroeconomic tension and geopolitical concerns, the next step forward for traders is one riddled with uncertainty. That is especially true when it comes to Apple (AAPL), as it has fallen below $200. Is it the right time to buy, sell, or hold?
The company has long been a titan in the consumer technology market. However, it has also faced increased scrutiny with US President Donald Trump sticking firm to America-first trade policies. All eyes are on how the iPhone developer will cope and what it could mean for shares of the Magnificent 7 stock.
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Apple Faces Increased Uncertainty Amid Struggling Market: Time to Buy, Sell, or Hold?
The volatility that the US stock market has faced since the start of April has only continued this week. Indeed, the Dow Jones Industrial Index fell another 150 points to start the day. Moreover, Wall Street took another step back as the ongoing hope for trade deals persisted.
That has brought traders to a rather concerning predicament. Although some of the mega-cap stocks have proven their worth, what should be their preferred step forward amid so many questions? Specifically, with Apple (AAPL) falling below $200, is now the time to buy, sell, or hold the stock?
The firm recently released its Q2 earnings data, which was pretty impressive. It boasts increased sales of 5%, surpassing $95 billion. Moreover, it recorded an even record of $26.7 billion, jumping 12% from the last quarter. It also featured notable guidance that projected Q3 sales to jump by the mid- to low single digits.
Also Read: Why Magnificent 7 Stocks are Rallying Today: AAPL, AMZN, & More
However, they also projected that they will face $900 million in tariff-related costs at a tax rate of 16%. Additionally, operating expenses are expected to reach heights of $15.4 billion. Alternatively, for many experts, those facets were not considered dealbreakers for its future prospects.
According to a Nasdaq report, Apple has been given a Hold rating by Zacks Rank. They note that the company is not a buy, even despite its 20% year-to-date drop. However, the stock “offers long-term value to shareholders” at its current position.
Further declines could trigger a sell rating, while an uptick would have the adverse effect. At this point, there are too many unknowns to warrant guidance of anything other than a hold suggestion from analysis.