Apple Stock Hovers Around Fundamental Floor

Apple's stock price has been hovering around its fundamental floor in the $280 to $300 range, sparking debate among investors about whether it's a good time to buy or sell.

The company's valuation is rich at 34x trailing earnings and 9.45x sales, but bulls argue that Apple has quietly become a software-margin business with a strong services mix and growing installed base of over 2.5 billion active devices.

Services generated $30.7 billion in revenue at a 75.6% gross margin, pulling the company's total gross margin to 50.1%. The aggressive buyback program, which has repurchased $62.09 billion in stock across the first nine months of FY2026, also supports the floor thesis.

However, bears argue that the valuation is too high and that Apple's revenue growth guidance of 9% to 11% next quarter is not sufficient to justify the current price. They also point out that margin risk is quantifiable due to memory pricing inflation and supply shocks.