Apple's Q1 Earnings: Can They Revive Stalled Stock After Two Downgrades?

Apple Inc. (AAPL) is set to report its fiscal first quarter 2025 earnings on January 30, a week after the company's stock was hit with two consecutive downgrades. The tech giant's shares have been under pressure due to concerns about slowing iPhone sales, market share losses in China, and regulatory risks related to the U.S. Department of Justice's antitrust lawsuit against Google. As Apple prepares to unveil its financial performance for the quarter, investors and analysts are closely watching to see if the earnings report can revive the company's stalled stock.

MoffettNathanson downgraded Apple stock to 'Sell' from 'Neutral' on January 30, citing concerns about the lack of consumer interest in new AI features, market share losses in China, and regulatory risks related to the Google antitrust lawsuit. The analyst firm also cut its price target to $188 from $202. Apple stock fell 1.2% to near $242 on the news. Oppenheimer, on the other hand, downgraded Apple stock to 'Perform' from 'Outperform' on January 31, removing its $250 price target and reducing its full-year revenue and EPS forecasts to $407 billion and $7.22, respectively. The investment firm pointed to slower iPhone sales and market share losses in China as key risks for iPhone growth over the next 12 to 18 months.



Apple's stock price has been volatile in recent months, with the company's shares hitting an all-time high of $260.10 on December 26, 2024, before retreating. The stock has since fallen, with Apple shares closing at $229.98 on Friday, down 0.75% for the day. Year to date, Apple's stock is down 5.69%, but over the past year, it has gained 18.61%.



As Apple prepares to report its Q1 earnings, investors and analysts will be closely watching the company's financial performance and guidance for the coming quarters. The tech giant's earnings report could provide valuable insights into the company's growth prospects and help investors make informed decisions about the stock. However, with the recent downgrades and concerns about slowing iPhone sales and market share losses in China, Apple faces significant challenges in the coming quarters.

In conclusion, Apple's Q1 earnings report could be a critical turning point for the company's stock, which has been under pressure in recent months. Investors and analysts will be closely watching the earnings report to see if Apple can address the concerns raised by the recent downgrades and provide a positive outlook for the company's future growth prospects. The tech giant's earnings report could help revive the company's stalled stock and restore investor confidence in the company's ability to navigate the challenges it faces in the coming quarters.