Apple (AAPL) Stock Down 16%: Will Earnings Spark a Rebound?

Jaxon Gaines
apple inc aapl stock
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Shares in Apple (AAPL) stock are down 16% in 2025, one of the worst performers among big tech on the US markets. The iPhone developer has struggled in 2025, with the company being hit hard by tariff threats during the Spring. Since the company shifted its production efforts from China to India despite US President Trump’s warnings, AAPL has slightly rebounded. In the last 30 days, investors have sent the stock up over 5.9%.

Apple is scheduled to release its Q3 2025 earnings report on Thursday, July 31, 2025, after the market closes. Apple is expected to potentially beat earnings estimates for its upcoming earnings report, with a positive Earnings ESP (Earnings Surprise Prediction) of +4.30%, according to Nasdaq. In the last report, Apple reported a strong Q2 2025, with revenue of $95.4 billion, up 5% year-over-year, and diluted earnings per share (EPS) of $1.65, up 8% year-over-year.

Apple By The Numbers: Analysts Still Call AAPL a Buy

Apple Inc.’s valuation metrics have shown a steady decline over the past year, with the P/E ratio decreasing from 39.37x in Q4 2024 to 32.28x in Q3 2025, indicating a more attractive valuation for investors. Growth metrics, however, reveal mixed results; while revenue growth improved to 4.91% in Q1 2025, earnings and free cash flow growth remain negative, suggesting challenges in profit generation.

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Analysts generally maintain a positive outlook on Apple (AAPL) stock, with multiple ‘Outperform’ ratings. Current price targets range from $225 to $300, indicating potential upside from the current market price of $209.11. These targets are forward-looking predictions based on analysts’ assessments of Apple’s future performance. Tigress Financial sets a bold $300 price target, while others remain more conservative. These conservative outlooks include Baird and Wedbush, who maintain their ‘Outperform’ ratings, including a $230 price target.

Furthermore, Bank of America analyst Wamsi Mohan wrote in his research piece to investors that Apple stock has upside potential in July 2025. He wrote that AAPL has a forward price-to-earnings ratio of around 26.5, which is below its five-year average of about 27.2. BofA sees this as a possible entry point for investors to accumulate the stock and hold on for the short term. The price target provided by the Bank of America analyst for Apple stock in July 2025 is $235. That’s an uptick and return on investment (ROI) of approximately q0% from its current price of $210.