AAPL Stock Under Pressure as Valuation Remains High

Apple's stock has maintained an elevated valuation of 36x P/E despite decelerating revenue growth and margin compression. The company recently showcased its foldable iPhone Duo at a Surprise and Shine event, but pricing and cannibalization risks limit incremental revenue and margin expansion.

Gross margin pressures persist, with Q4 guidance implying further compression due to memory cost inflation and limited pricing power. This has led one analyst to reiterate their sell rating on Apple stock, citing that the premium multiple is not supported by current growth or profitability guidance.