Apple Earnings Preview: Why It’s Time to Take Profit on AAPL Stock
In the lead-up to Apple’s upcoming quarterly earnings release, “AI mania” for the Mag 7 component has faded.A further sentiment shift may occur after the iPhone maker’s latest results hit the street post-market on Aug. 1.Positive analyst sentiment may be undermined by negative guidance, leading to a potential drop in Apple stock to $175 per share.Over the past few months, “AI mania” propelled Apple shares to new all-time highs. More recently, however, excitement about possible generative artificial intelligence growth catalysts for Apple stock have faded.The jury’s still out whether all of this spending will result in an adequate return on investment. This has led to price declines across the board for “Magnificent Seven” stocks across the board, not just AAPL. Meanwhile, with “AI mania” cooling down, long-standing concerns about the company are coming off the back burner.According to Seeking Alpha, over the past 90 days, 17 analysts covering AAPL have increased th