Apple Gears Up For Q2 Earnings With Bearish Technicals: 'Super Cycle Unlikely' Says Strategist

Apple Inc AAPL will be reporting its second-quarter earnings on Thursday. Wall Street expects $1.63 in EPS and $94.53 billion in revenues as the company reports after market hours.

The stock is up 25.52% over the past year, down 12.86% YTD.

Let’s look at what the charts indicate for Apple stock and how the stock currently maps against Wall Street estimates.

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Apple Stock Stuck In A Stagnant Trend Ahead Of Q2 Earnings

Chart created using Benzinga Pro

Apple stock is currently navigating a relatively stagnant trend, but underlying buying pressure may be laying the groundwork for a bullish breakout. Apple stock, at $212.50, is trading above its eight-day and 20-day simple moving averages – $208.54 and $199.51, respectively – indicating short-term bullish momentum. This suggests that traders are stepping in to support the stock at current levels, a constructive sign for potential upside.

However, Apple stock still faces resistance on longer timeframes, as it trades below its 50-day and 200-day simple moving averages of $216.38 and $227.23. These levels suggest that the broader trend remains bearish for now. The Moving Average Convergence Divergence (MACD) reading of a negative 0.71 further supports this cautious stance, though the Relative Strength Index (RSI) at 54.2 reflects moderate bullish sentiment without being overbought.

Overall, while Apple stock isn't yet in full bullish territory, continued buying pressure and a break above the 50-day moving average could mark a trend reversal worth watching.

Tariffs, AI Delays Could Mute Super Cycle Talk

Heading into earnings, expectations are being tempered by macro uncertainties. According to Hightower Advisors’ Chief Investment Strategist Stephanie Link, first-quarter numbers may have seen a pull-in ahead of tariffs, but Apple may refrain from providing forward guidance.

She points to tariffs and AI delays as reasons why she finds the scenario of a “super cycle unlikely.” Though services – expected to grow double digits – will likely be a bright spot. Still, with Apple trading at 28x earnings and showing only single-digit revenue growth, valuation could be a headwind.

Apple Analysts See About 4% Upside

Ratings & Consensus Estimates: The consensus analyst rating for Apple stock is currently a Buy, with a price target of $233.40. The three most recent analyst ratings for Apple stock, from Rosenblatt, Loop Capital and Barclays, imply a 3.70% upside based on their average price target of $217.

AAPL Stock Price Action: Apple stock was down 0.2% at $212.06 at the time of publication Thursday.

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