Apple’s Stocktwits Sentiment Before Earnings Shows Retail Is Shrugging Off iPhone Growth And China Worries

Ahead of Apple's (AAPL) crucial Q3 earnings report after the closing bell today, retail investor sentiment on Stocktwits has shifted into ‘bullish’ territory (65/100), shrugging off recent concerns about iPhone growth and the Chinese market.

The company is reportedly seeing a slowdown in iPhone shipments, with Canalys estimating only 6% year-over-year growth in the June quarter, and a dip in market share in China.

Several factors could be driving the surge in retail confidence. First, analysts like Wedbush's Daniel Ives remain bullish, predicting a "renaissance of growth" and a $4 trillion market cap for Apple by 2025.

There has also been a streak of recent price-target upgrades from analysts, including Baird, Raymond James and T.D. Cowen. Morgan Stanley's Erik Woodring also named Apple his top pick and raised the price target to $273 — an upside of over 22% from current levels — citing the potential of Apple Intelligence to drive iPhone upgrades.  

Retail investors are echoing this optimism. Some believe AI features will be a major driver of iPhone sales, while others are simply bullish on Apple's overall strength.

“I think since AI is going to be on their new iPhones, it will drive masses to get new iPhones. I think their future forecast is going to be high,” said bullish Stocktwits user AlexBNice.

“$AAPL Going to 250 after Earnings. Load up,” wrote another optimistic watcher.

However, the iPhone growth slowdown and China's market dynamics pose legitimate concerns for some bearish observers. Shares of the company are down nearly 0.70% at $220.54 on Thursday.

The current sentiment on Stocktwits suggests retail investors are betting on Apple's ability to overcome these challenges. Apple's strong YTD performance (up 18.90%) and consistent earnings beats likely contribute to this confidence.

Apple’s earnings report will be a key test for the Cupertino-based tech giant. Wall Street will be watching closely, as always, but the optimism brewing among retail investors suggests they are willing to give Apple the benefit of the doubt for now.

Photo courtesy: Apple