Apple Stock Rises Post-Tariff Selloff Ahead of Earnings Announcement

Apple Inc. shares experienced a modest increase of 0.2% in early trading on January 21, 2026, recovering from a substantial drop of 3.5% the previous day. This rise comes amid a fraught market atmosphere, largely due to uncertainties surrounding impending U.S. tariff announcements. As President Donald Trump prepares to deliver a keynote speech at Davos, Wall Street is closely monitoring Apple’s upcoming earnings report, scheduled for release on January 29.

Market Reactions and Earnings Outlook

Apple’s stock climbed to $247.15 as investors weighed the potential challenges and opportunities related to its earnings announcement. Analysts are debating the company’s ability to maintain growth in iPhone sales despite rising margin pressures from increasing component costs.

Upcoming Earnings Announcement

• Date: January 29, 2026
• Focus: Holiday demand, pricing stability, and component costs
• Expectation: Financial results to reveal whether gross margins will sustain

The results will provide insights into how well Apple managed to cope with holiday sales dynamics during the fiscal first quarter. Many are concerned about whether rising component costs have impacted overall profits.

Tariff News Influencing Market Sentiment

The trading environment remains volatile following a significant market downturn where U.S. stocks fell sharply. Investors are apprehensive about new tariff threats announced by President Trump, including a 10% import duty set to commence on February 1 for goods from several European nations. If negotiations stall regarding Greenland, this tariff may escalate to 25% by June 1.

Analyst Perspectives

• Amit Daryanani from Evercore upgraded Apple to a tactical outperform status, projecting stronger-than-expected iPhone demand.
• He maintains a price target of $330 and predicts revenue of $140.5 billion for the December quarter.
• Atif Malik from Citi adopted a more cautious approach, lowering his price target to $315 while reiterating a Buy rating.

Malik attributes his conservative outlook to the risks associated with rising memory component pricing, though he remains optimistic about Apple’s sales trajectory in the coming quarters.

Risks and Considerations Ahead of Earnings

As the earnings date approaches, traders will focus on key indicators that may affect Apple’s stock performance. Risks related to tariffs and their broader economic implications could potentially dampen investor sentiment. If Apple fails to meet market expectations or if management expresses concerns about profit margins during the earnings call, the stock may face pressure, despite any short-term profits that exceed forecasts.

Analysts and investors alike will be watching carefully as Apple prepares to address questions regarding iPhone demand, growth in its services sector, and the impact of component costs on profitability.