Why This Will Be A Crucial Week For Apple Stock

After dropping the most in four months on September 10, Apple stock could be swayed by a few key factors this week. The Apple Maven reviews the most important ones.
Publish date:

Not even 72 hours after logging its worst day of returns since early May 2021, Apple stock  (AAPL) - Get Apple Inc. (AAPL) Report faces a crucial week ahead in the market. Today, the Apple Maven reviews the key developments of the next five trading days that could move AAPL shares, either higher or lower.

Figure 1: Apple store in New York, NY.

Figure 1: Apple store in New York, NY.

(Read more from the Apple Maven: Buy Apple Stock: Wall Street Dials Up On Bullishness)

iPhone 13 to see the light of day

Apple’s big product launch event of the year will take place on September 14. The Cupertino company is widely expected to unveil its new smartphone model, the iPhone 13, while a new Watch and set of AirPods will probably be featured as well.

It is unclear whether the product announcements will have much of an impact on the stock price. As usual, two factors will likely play an important role in swaying investor sentiment: product features and timing on the availability of the products.

Currently, the expectations are for minimal feature upgrades and little (if any) delay. Any deviation from the status quo could be a stock price mover. Morgan Stanley’s Katy Huberty seems to believe that the setup is favorable for AAPL shares ahead of the product launches.

Will App Store concerns linger?

Another item to keep an eye on this week will be the App Store. The Apple Maven has recently argued that scrutiny over the Cupertino company’s app platform could be a key risk that Apple stock investors should pay attention to, despite some Wall Street analysts having dismissed it as largely immaterial.

On Friday, the market seems to have recognized the potential downside. AAPL shed $82 billion in market cap on the back of the Apple vs. Epic court ruling. The iPhone maker must now allow other forms of in-app purchases, which could prevent Apple from collecting its commissions of up to 30%.

Will Apple stock recover from the recent decline, putting to rest fears over a more pronounced pullback? Or will the recent App Store development lead to a more damaging selloff?

More economic data

At a macro level, other factors could impact Apple stock during this important week. On Tuesday, the Labor Department will release its report on consumer inflation. This has been one of the hottest topics of conversation so far in 2021 – and growth stocks have been particularly sensitive to data on price movements.

Then, on Thursday, the U.S. Commerce Department will share numbers on retail sales. This is usually an important gauge on consumer activity and could reflect demand for Apple’s consumer products and services.

Twitter speaks

This is an important week for Apple. Topics ranging from the iPhone 13 to the App Store could impact the performance of AAPL stock. How do you expect share price to move in the next trading days?

Is the price right?

Looking at a company’s business fundamentals is only half the work needed to find a good stock. How much one pays to own the shares is a key factor in the success of any investment. This is why valuation analysis is so important.

Alpha Spread’s user-friendly platform allows you to estimate a stock’s fair value –through valuation multiples, discounted cash flow, and more. I believe that the service is a must for anyone looking to own the right stock at the right price. Check out alphaspread.com and get started with a 7-day free trial.

(Disclaimers: this is not investment advice. The author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting The Apple Maven)