So Apple dropped the iPhone 17 a couple weeks ago, and honestly? The stock market’s reaction has been about as exciting as watching paint dry on a rainy Tuesday.
Here’s the deal: AAPL popped about 3.3% when the new phones hit shelves, then jumped another 4% a few days later to $256. Classic Apple move, right? But since then? It’s been flatlining harder than a bad sitcom, barely budging to $258.
Now, before you start panicking about your Apple shares, remember this is totally normal. Apple stock has this annoying habit of playing “buy the rumor, sell the news” – it gets all hyped up before launches, then promptly takes a nap once the actual product drops. It’s like that friend who gets super excited about plans but then cancels last minute.
Wall Street’s Having an Identity Crisis
The analysts are all over the place on this one, and it’s honestly kind of hilarious to watch.
Jefferies just straight-up downgraded Apple to “underperform” (which is Wall Street speak for “maybe don’t buy this right now”). Their analyst Edison Lee basically said the iPhone 17 hype is already baked into the $258 price tag, and everyone’s getting way too excited about future iPhone cycles. With a P/E ratio of 39, he’s calling the stock “overly bullish” – which is fancy talk for “this thing’s expensive, y’all.”
Their price target? A brutal $205, which would mean a 21% haircut from current levels. Ouch.
But wait! Morgan Stanley’s over here like “hold my coffee” and raised their target to $298. They’re saying the iPhone 17 launch was actually stronger than expected, with people finally upgrading their ancient phones. Plus, they’re already getting excited about the iPhone 18 cycle next year because apparently we’re never satisfied with our current phones.
Then UBS chimed in with their hot take that the iPhone 17 has already hit “peak demand.” They’re sitting neutral with a $220 target, basically shrugging their shoulders at the whole situation.
The Reality Check
Here’s the thing about Apple – it’s not just a phone company anymore, even though everyone still obsesses over iPhone sales. With a $3.83 trillion market cap (yes, you read that right), this company is basically worth more than some countries’ entire economies.
The median analyst price target sits at $250, suggesting the stock might actually drop about 3% over the next year. That’s not exactly screaming “buy me now,” but it’s not disaster territory either.
Look, Apple’s always been that premium stock that trades at premium prices. The question isn’t whether they make good products (they obviously do), it’s whether the stock price already reflects all that goodness and then some.
At 39 times earnings, you’re paying a hefty premium for the Apple experience. Whether that’s worth it depends on how much you believe in Tim Cook’s ability to keep the innovation train rolling and find the next big thing beyond phones.
Bottom line? Apple’s not going anywhere, but at these prices, you’re betting on perfection. And in the stock market, perfection rarely comes cheap.