On September 29, Apple shares decreased by 2.66%, closing at $329.40 and losing support at $333. This decline left the shares 4.6% below the record high of $345.34 set on September 22. The reasons for the decline are related to internal management changes. The new CEO of the company, John Ternus, plans to reduce the number of middle managers and the roles of engineering program managers. He may also cancel the fixed launch calendar for new products, which operates in spring and autumn.
Bank of America analyst Wamsi Mohan noted that Meta's AI agent Muse poses a threat to Apple. Nevertheless, he continues to recommend buying the company's shares. Currently, Apple shares are trading at 37.8 times earnings, which exceeds the five-year median of 31. UBS has set a target price for the shares at $296. The decline in shares also erased more than half of the gains achieved since Ternus was appointed CEO on September 1. Apple reported record revenue in the third quarter of $109.4 billion, which is 16% higher than the same period last year. iPhone sales increased by 22%. However, the company's management expects the gross margin to decrease from 47% to 48% due to rising memory prices. The earnings report will be published on October 29.
The stock chart shows a double top formation, with the first point recorded at $344.57 on July 29, and the second – at the record high of $345.34. The shares lost the $333 level, which may now serve as resistance, and are testing the upward trend line that was consistently held in August and September. This line coincides with the Fibonacci level 0.236 at $328. Closing below this level could open the way to the 0.382 level around $315. Deeper support is at the 0.618 level around $300, which also corresponds to the double top level, so breaking it would confirm this formation. If the trend line holds and the $333 level is restored, the shares could be on the path to the record $345 before the earnings report is published.
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