Apple (AAPL) Stock Down 16%: Will Earnings Spark a Rebound?

Apple's stock (AAPL) has tumbled 16% in 2025, marking it as one of the worst performers in the big tech sector. The decline follows a turbulent year, exacerbated by tariff threats in the Spring. A shift in production from China to India—despite warnings from former US President Trump—has spurred a modest 5.9% rebound over the past month.

Investors are now eyeing the Q3 2025 earnings report, due after market close. Analysts anticipate a potential beat, with a positive Earnings ESP of +4.30%. The company's Q2 results were robust, with revenue climbing 5% year-over-year to $95.4 billion and EPS rising 8% to $1.65.

Valuation metrics tell a mixed story. Apple's P/E ratio has dropped from 39.37x to 32.28x, signaling a more attractive entry point. Yet, earnings and free cash FLOW growth remain negative, underscoring profitability challenges. Despite this, analysts maintain an 'Outperform' rating, betting on a turnaround.