Apple’s stock has started the year on a losing streak. Shares have fallen for several sessions in a row, and investors remain uneasy. Still, one analyst says the market reaction does not match the company’s actual performance and outlook.
The stock dropped again on Friday, extending a multi-day decline that has erased nearly six percent of its value. If the slide holds through the close, it will mark Apple’s longest losing run in months. This has added to a growing sense of caution around the company.
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Stock Has Been Falling
Several worries have weighed on Apple shares. First, investors fear that iPhone sales in China are slowing. Next, there is uncertainty surrounding Apple’s artificial intelligence plans, especially as rivals move faster in the public eye. At the same time, rising memory prices have raised concerns about higher component costs.
Market sentiment also took a hit earlier this week when Alphabet passed Apple to become the world’s second-largest company by market value. For many investors, that moment symbolized a broader shift in confidence.
An Analyst Sees a Disconnect
In a Friday note, Evercore ISI analyst Amit Daryanani pushed back on the negative view. He called the stock a “top pick” and raised his price target to $330 from $325. That suggests more than 25 percent upside from recent levels.
Daryanani also increased his forecast for Apple’s December-quarter results, which the company will report on Jan. 29. Evercore now expects revenue of $140.5 billion, above the $137.3 billion consensus estimate. He also projects earnings per share of $2.71, compared with the market expectation of $2.66.
Daryanani pointed to recent sales data that he says challenges the bearish narrative around the iPhone. During China’s Singles’ Day shopping event, iPhones made up 26 percent of all phone shipments, according to the Evercore report. In the United States, demand continues to favor the higher-priced Pro and Pro Max models.
That shift toward premium devices matters. Higher-end models lift Apple’s average selling price and, in turn, support profit margins. In other words, even if unit growth slows, revenue quality remains strong.
Rising memory prices have also concerned investors, particularly as AI infrastructure drives demand for these components. However, Daryanani said Apple’s existing pricing agreements should protect it from near-term cost increases. That insulation reduces the risk that higher input costs will erode margins in upcoming quarters.
Apple on AI
Another concern is Apple’s AI strategy. Critics argue that the company lacks a clear plan compared with other tech giants. Daryanani disagrees. He expects Apple to roll out a tiered Apple Intelligence approach, combining on-device models with a secure private cloud for more complex tasks. He also anticipates optional access to larger external AI tools.
This structure would allow Apple to expand its AI capabilities while keeping its focus on privacy. If announced, it could remove a major source of uncertainty for investors.
Apple’s stock may be under pressure today. Still, according to this view, the company’s fundamentals remain strong. If earnings beat expectations and Apple clarifies its AI roadmap, the recent sell-off could look overdone.
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