Why Apple stock is a ‘solid buy' right now

Core Viewpoint - Apple has emerged as a strong buy in a volatile tech market, supported by both technical indicators and fundamental factors [1] Technical Analysis - Apple stock has been trading within a two-year Channel Up pattern, with recent corrections aligning with a technical bearish leg [3] - On January 28, the stock tested the 200-day moving average for the first time since May 2024, triggering a sharp recovery [3] - The one-day Relative Strength Index (RSI) dropped to the oversold threshold of 30, historically regarded as a reliable buying signal [4] - The correction mirrors previous patterns, such as the October 2023 pullback, which bottomed at the 0.618 Fibonacci retracement level before a significant rally [6] - Based on these patterns, Apple's next target stands at $260, presenting a medium-term upside for investors [6][7] Fundamental Factors - Apple's fiscal first-quarter earnings report is scheduled for January 30, with investors anticipating insights into the company's growth and stability [8] - The iPhone remains the most significant revenue contributor, accounting for 48.7% of fiscal Q4 2024 sales, but faces challenges in China due to competition from local tech giants [9] - Analysts project fiscal Q1 2025 iPhone sales at $70.7 billion, with full-year revenue expected to reach $207.7 billion in 2025 [9] - Full-year iPhone revenue estimates have been revised downward since early August 2024, reflecting concerns about sustaining momentum in key international markets [10] - The Services segment, including Apple TV+, Apple Pay, and the App Store, is expected to grow 13.2% year-over-year to $26 billion in fiscal Q1 [11] - Apple's cautious approach to artificial intelligence distinguishes it from peers, allowing it to avoid risks associated with an overinflated AI bubble [12]