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November 5, 2026 | Issue 176
Is AAPL a Buy or a Short
Nikolay Stoykov
Managing Partner at Alaric Securities
We have covered Apple Inc. (AAPL) several times in our Market Insights series. Our earliest article, published in May 2024, argued that AAPL was cheap and worth investing in. Later articles focused mostly on the Magnificent Seven, mentioning Apple only in passing.
Apple is currently the largest publicly traded company in the US by market capitalization. It has just reported earnings, and both the stock and the broader market have pulled back from their highs.
So, is AAPL a buy or a short? Let’s find out.
AAPL analyst rating – far from a Wall Street darling
AAPL analyst ratings. Source: Seeking Alpha
You might expect a longtime favorite of Warren Buffett, and one of the world’s most valuable brands, to be loved by Wall Street analysts. That is not the case.
AAPL’s current average analyst rating of 3.76, based on ratings over the last 90 days, is mediocre at best and not much of an endorsement.
AAPL price target vs. share price
AAPL historical analyst rating and price target. Source: Seeking Alpha
AAPL is still rated somewhere between Buy and Hold, not Sell. But its average analyst rating is now at its lowest level in five years.
Moreover, with stock trading at above 350, its price remains firmly above the average analyst target of $332.
For mega-cap companies in particular, analyst price targets are a useful reference point for judging whether a valuation has become stretched. Stocks can trade above these targets for long periods. Still, the lowest rating in five years combined with a share price above the average target strengthens the case for a short position.
Is Apple stock overvalued?
AAPL valuation metrics. Source: Seeking Alpha
For comparison, the S&P 500 has a forward P/E ratio of 20.05, with earnings expected to grow by 21.45%.
By these measures, Apple stock looks quite expensive.
Is AAPL a buy right now?
Yes, Apple has been a phenomenal investment in 2026. But the key words are has been. As most of our readers know, past performance is not indicative of future returns.
Should you short Apple stock?
At current valuations, we would conclude that AAPL may no longer be an attractive investment, and that it could be a short candidate.
So, is AAPL a buy or a short? For us, it currently looks more like a short.
Disclaimer
The articles, podcasts, and newsletters from Alaric Securities OOD are classified as marketing communications. The views expressed are solely those of the individual authors affiliated with Alaric Securities OOD and do not necessarily reflect the views of the company, its subsidiaries, or affiliates. This content is provided for informational purposes only. It does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security, digital asset (such as cryptocurrency), or other financial instrument. Third-party content is included solely for informational purposes and does not reflect the views of Alaric Securities OOD. All investments involve risk, including the possible loss of principal. Past performance is not indicative of future results. References to third-party companies, logos, or trademarks are used under fair use/fair dealing principles for analysis and commentary.
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