--- title: "Independent research firm Hedgeye warns that Apple's stock price has a potential downside of 23%" type: "News" locale: "en" url: "https://longbridge.com/en/news/292339404.md" description: "Independent research firm Hedgeye has listed Apple as a short target, believing its stock price has about a 23% downside potential. Reasons include high valuation (price-to-earnings ratio of about 34 times) and overly optimistic growth expectations that have already been priced in by the market. Analysts point out that the Greater China region needs to achieve double-digit growth to support the current valuation, but this target is difficult to reach under competition from Huawei. Despite rumors of acquiring AI startups, investors are still waiting for the July financial report to validate the bullish and bearish logic" datetime: "2026-07-10T15:37:59.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292339404.md) - [en](https://longbridge.com/en/news/292339404.md) - [zh-HK](https://longbridge.com/zh-HK/news/292339404.md) --- # Independent research firm Hedgeye warns that Apple's stock price has a potential downside of 23% Independent research firm Hedgeye recently listed Apple as a new short target, believing that its stock price has about 23% downside potential, citing that high valuations and overly optimistic growth expectations have largely been priced in by the market. The firm's analysts pointed out that investors' expectations for the AI iPhone super upgrade cycle have been widely accepted and reflected in the stock price by Wall Street sell-side analysts. Currently, Apple's price-to-earnings ratio is about 34 times, and this valuation requires double-digit growth in the Greater China region in fiscal years 2027 and 2028 to support it, but this target seems overly optimistic under the competitive pressure from Huawei. The analysts further noted that although Apple is still gaining market share in China, the growth rate for the June quarter has not accelerated. If the revenue growth rate in the Greater China region falls to single digits in the future, the current high valuation will be difficult to maintain. While the firm issued a bearish warning, there are market rumors that Apple is in talks to acquire an AI startup. The company reportedly possesses technology that compresses large language models to less than one-tenth of their original size, allowing AI to run locally on the iPhone and reducing reliance on the cloud. Apple's stock price has risen about 15% year-to-date, and the market's reaction remains relatively mild, with investors waiting for the earnings report on July 30 and sales data from the Greater China region to validate the bullish and bearish logic ### Related Stocks - [AAPL.US](https://longbridge.com/en/quote/AAPL.US.md) - [AAPD.US](https://longbridge.com/en/quote/AAPD.US.md) - [AAPB.US](https://longbridge.com/en/quote/AAPB.US.md) - [AAPX.US](https://longbridge.com/en/quote/AAPX.US.md) - [AAPU.US](https://longbridge.com/en/quote/AAPU.US.md) - [AAPW.US](https://longbridge.com/en/quote/AAPW.US.md) - [APLY.US](https://longbridge.com/en/quote/APLY.US.md) - [AAPY.US](https://longbridge.com/en/quote/AAPY.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) ## Related News & Research - [Apple Releases New AirPods Beta Firmware With iOS 27 Features](https://longbridge.com/en/news/291966202.md) - [META Stock Pops as Meta Platforms Launches AI Image Model](https://longbridge.com/en/news/291976054.md) - [iOS 27 Public Beta is Coming Soon](https://longbridge.com/en/news/291968419.md) - [Apple sues OpenAI, two former employees for trade secrets theft](https://longbridge.com/en/news/292355679.md) - [Apple accuses OpenAI of playing dirty in the AI talent wars](https://longbridge.com/en/news/292361652.md)