Story · Apple
Why Apple Stock Dropped Today
Apple stock fell 2.3% on July 20, 2026, despite a bullish note from Bank of America analyst Wamsi Mohan, who reiterated a 'buy' rating and $380 price target. Investors focused on the analyst's warning of declining gross margins due to rising component costs, with Q3 2026 margins expected at 36.8% and Q4 falling to 34.1%. While Mohan called the declines 'transitory' and predicted a rebound above 38% in fiscal Q1 2027, the short-term outlook spooked the market. The article also notes Apple's high valuation (40x earnings) against a 13% growth rate, and the impending departure of CEO Tim Cook as additional concerns ahead of the Q3 earnings report on July 30.
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