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Further Reading from MarketBeat.com Why Apple's Sell-Off May Be Overdone Right Before EarningsBy Sam Quirke. Date Posted: 1/22/2026. 
Article Highlights - Apple’s stock has retraced sharply and entered deeply oversold territory technically, creating a potential buying setup ahead of earnings.
- Despite recent share weakness, Apple’s fundamentals—strong margins, recurring services revenue, and capital return programs—remain intact.
- Analyst optimism and upbeat price targets underscore expectations that a positive earnings report could trigger a meaningful rebound.
Shares of tech giant Apple Inc. (NASDAQ: AAPL) have been under pressure as investors continue to sell the stock. With shares trading around $245, they are down nearly 15% from the all-time high set last month. The drop has been largely one-directional and somewhat surprising given Apple's reputation as one of the market's most dependable large-cap performers. The broader backdrop hasn't helped: rising geopolitical tensions have driven a sharp risk-off sentiment across equities over the past week. What makes the current setup notable is how stretched some of the stock's technical indicators have become. This month Apple's relative strength index (RSI) has plunged into extreme oversold territory — at roughly 18, it is at its lowest reading since September 2008. That is an extreme level by any measure and raises the question of whether selling pressure has gone too far, too fast, especially with earnings due next week. Context Matters as Apple Heads Into Earnings JC Parets has spent more than 20 years tracking the market's most important technical signals, and he's now warning that a key date on the calendar could mark the next major turning point for stocks. After calling the 2008 crash, the 2020 collapse, and the exact bottom in 2022, he's sounding the alarm again — and he's sharing the specific day he believes investors need to prepare for. See JC's latest market forecast here An RSI this low would attract attention for almost any large-cap stock, but with a closely watched earnings report coming next week the setup becomes even more interesting. Apple has a long track record of outperforming analyst expectations each quarter, and that history shapes the current opportunity. Having been sold off so aggressively, is it possible the worst-case scenario is already priced in? Apple's Fundamentals Continue to Support the Bull Case From a business standpoint, recent share price action looks increasingly disconnected from fundamentals. Apple's consistent record of beating expectations is rare among peers. Gross margins remain strong, and its ecosystem-driven model continues to generate reliable cash flow. Apple's capital return strategy also provides a meaningful cushion for investors considering a partial entry. A robust share buyback program and steady dividend growth mean management is often a persistent buyer during periods of weakness. That doesn't prevent drawdowns, but it can limit how long pessimism dominates. There are, of course, headwinds behind the sell-off. iPhone shipment volumes have come under pressure, and Apple's valuation sits toward the upper end of its recent range. Those factors explain some caution, but they don't fully justify the speed or scale of the recent drop. Analyst Conviction Builds Going Into Apple's Earnings Report The buy-the-dip argument gains further weight from Apple's steady analyst support. This week Evercore added Apple to its tactical outperform list ahead of next week's earnings, signaling confidence that results will exceed expectations. A recurring theme in recent commentary is the mix of iPhone sales: higher-end models have reportedly accounted for a larger share of demand, supporting average selling prices and margins. Services revenue is also expected to remain a steady growth engine, helping offset any softness in hardware volumes. Evercore set a fresh price target of $330, implying upside of about 35%, and Wedbush recently issued a bullish update with a $350 price target. Those forecasts reinforce the idea that the market may have overreacted. Even a modest beat on revenue or earnings could shift sentiment, particularly given how washed-out momentum already looks. Apple's Risk/Reward Skews Favorably at Current Levels None of this makes Apple risk-free. Earnings next week will matter more than usual, and a genuine disappointment could trigger further weakness, especially if geopolitical tension escalates. Still, the setup looks increasingly asymmetric. This is the most oversold Apple has been in nearly two decades. For a company with Apple's balance sheet, margins, and history of shareholder returns, the current levels present a compelling risk/reward profile for cautiously sized, selective buying. Investors should weigh that opportunity against the possibility of additional downside and consider position sizing and risk management accordingly.
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