Apple Q2 2025 Earnings came in above expectations, but the company is facing challenges due to tariffs. Tim Cook, Apple’s CEO, highlighted that the ongoing trade tensions could cost the company as much as $900 million in the current quarter. Despite this, Apple’s stock took a hit, falling nearly 4% to just above $205, which has resulted in a significant drop of about 20% in the company’s value this year.
Apple Q2 2025 Earnings: Impact of Trade Tensions
The elephant in the room continues to be the tariff storm, with Apple and Cook caught in the middle. Following the release of the earnings report, Wedbush analysts remained optimistic about the stock and even raised their price target to $270, from $250, based on Cook’s statement that most iPhones sold in the U.S. this quarter will be sourced from India instead of China. This shift could potentially reduce the impact of tariffs on Apple.
Apple Q2 2025 Earnings: Analysts Adjust Price Targets
While Apple’s Q2 2025 Earnings exceeded projections, analysts from JPMorgan and Bank of America adjusted their price targets downward. JPMorgan lowered its target to $240, while Bank of America set it at $235. They warned that while Apple may benefit from stockpiling inventory, that advantage could fade as tariffs persist. The ongoing trade war remains a significant risk for Apple’s bottom line, especially with President Trump’s stance on tariffs and trade with China.
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Source: www.investopedia.com
