Apple Earnings: Tech Rally Under Threat as Investors Assess AI, iPhone 16 Demand

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Stocks Analysis by Investing.com (David Wagner) covering: Apple Inc. Read Investing.com (David Wagner)'s latest article on Investing.com

Anticipation for Apple’s results grows amid recent Big Tech earnings volatility.Ambitious forecasts could sidestep any earnings disappointment, but the stock looks overvalued.this evening after the market closes, marking a key event in an especially busy earnings week. The early reports this week have been a mixed bag, with some companies falling short in both results and forecasts.) for the title of the world's largest company.

This week, Apple introduced its first set of"Apple Intelligence" features, about six weeks after the iPhone 16 launch. However, we will not see Apple's major AI features until early next year. This means AI's impact on this quarter's sales may be limited.These forecasts will offer insights into how Apple views AI's potential impact on sales.

Analysts generally view Apple's stock as fairly valued at the moment. The average target among 42 analysts tracking the stock is $240.77, about 4.6% above Wednesday’s closing price.With limited upside potential according to analysts and suggestions of overvaluation by valuation models, Apple may need a big surprise in its results to see significant stock gains.

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