Apple stock slides as CEO transition to John Ternus pressures sentiment

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Apple slides 2.67% after Q4 results

Highlights

Apple reported fiscal Q4 revenue of $114.5 billion and net profit of $30.7 billion, with CEO leadership changing from Tim Cook to John Ternus.
Gross margin reached 47.9% but faced pressure from rising memory costs, and management projects a further decline to 45 to 46% for the December quarter.
Shares of Apple closed 2.67% lower, trading below key moving averages amid strong bearish momentum and an expected two to three day range of $316.06 to $336.66.

Gross margin outlook cut as memory costs and AI investment rise

Apple reported revenue of $114.5 billion and a net profit of $30.7 billion for its fiscal fourth quarter 2026, a period that also saw the transition of CEO leadership from Tim Cook to John Ternus, according to Macrumors. The company disclosed a gross margin of 47.9% in the quarter, with one percentage point from tariff refunds, but underlying margins faced pressure from higher memory costs. Management further guided for gross margin to decline to 45–46% for the December quarter as a result of rising input costs and investments in the Siri AI rollout, as reported by Pro Thestreet.

Bearish momentum dominates as oversold signals meet resistance

On the technical front, AAPL is trading below both the MA-20 at $344.26 and MA-50 at $340.33, but remains above the MA-200 at $296.96 on the daily chart. The Ichimoku Kijun sits at $338.63, acting as immediate resistance. Among momentum indicators, MACD is neutral, whereas ADX signals a Sell bias. RSI stands in the neutral area, while Stochastic RSI and CCI are both in oversold territory, indicating possible short-term selling exhaustion. Bull/Bear Power is negative at –7.78, pointing to seller dominance within intraday trading. The Awesome Oscillator shows a strong sell, strengthening the overall bearish momentum. Despite some indicators signaling oversold conditions, the majority align with prevailing downward pressure.

Downside risk prevails as breakout levels narrow price range

Looking ahead over the next two to three trading days, the expected price range for AAPL stands between $316.06 and $336.66, reflecting the typical volatility band relative to current levels. Short-term probabilities skew 71% toward further downside with only a 29% likelihood of an upward move. The baseline scenario points to price consolidation within this corridor. A bullish breakout would require a close above resistance near $338.63, while a sustained move below $316.06 could trigger additional downside.

Viktoras Karapetjanc, expert at Traders Union, sees Apple’s latest earnings and leadership transition as important macro and sentiment drivers. He notes the company’s strong quarterly profit but points to near-term margin pressure from rising costs and heightened spending on AI as a headwind for sentiment. Technical signals are bearish, yet some indicators show the stock may be oversold in the short term. The analyst believes institutional investors will closely watch how the new CEO steers growth and expense strategy. "If Apple can stabilize its margins and deliver on AI investments under new leadership, the upside potential remains attractive despite short-term volatility."

Previously it was reported that Apple faced ongoing margin pressures and short-term technical headwinds with downside momentum prevailing. The latest results reinforce those challenges as rising input costs and a projected margin decline underscore the importance of monitoring the $338.63 resistance level for any potential shift in price direction.

Source of Data: AAPL Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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