AAPL Under Pressure as Valuation and Margin Risks Weigh on Apple Shares

Apple shares are trading near $303 as investors become more cautious after the July rally. Despite strong fiscal Q3 results, Apple's valuation remains elevated.

The company reported record iPhone, Mac, and Services sales in its June quarter, with an installed base of active devices reaching a new all-time high.

However, rising component costs threaten margins, as Apple expects revenue growth of approximately 9-11% for the current quarter. The market viewed this outlook less positively due to the stock's already elevated valuation.

Jefferies downgraded AAPL to Underperform and cut its price target to $264, citing reports that Apple abandoned the concept of an all-glass anniversary iPhone.