Should You Buy or Sell Apple Stock Before July 31? The Answer May Surprise You
Key Takeaways
The technology giant now has a market cap of $3.1 trillion.
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5 min read
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investment
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July 21, 2025
09:00 AM
The Motley Fool
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What's remarkable is The nology giant now has a market cap of $3. 1 trillion
One of the most important companies in the world reports earnings on July 31 (an important development)
Moreover, Moreover, Apple (AAPL 1
However, 17%) -- maker of the iPhone, Apple Watch, Air Pods, and more -- is set to give investors another financial for the second quarter of 2025
The stock has soared in the last five years but has recently hit a rough patch in 2025, with s down 14% year to date (YTD) due to concerns over slowing growth and tariffs implemented by the United States on other nations
Moreover, 2025 is shaping up to be a pivotal year for Apple as it tries to find new ways to grow
Meanwhile, Does that mean you should buy or sell the stock before the July 31 earnings (fascinating analysis)
The answer is when looking at the numbers
Struggles to keep growing with peers It's undoubtedly one of the most fitable ducts ever, but the iPhone is now hitting maturity in relation to its annual sales around the globe
Pricing power can help the $200 billion-per-year duct eke out a little bit of growth in the coming years, but the fact that upgrade cycles for customers keep expanding will be a consistent headwind for duct growth
Moreover, New phones are now similar to older models, with little nological innovation to spur customers to upgrade to the devices (which is quite significant)
The iPhone makes up half of Apple's overall revenue (an important development)
Stagnation in iPhone revenue -- which hasn't grown since 2021 -- is why Apple's overall revenue has barely grown in the last few years
Moreover, It's ing for the next blockbuster computing duct, in light of current trends
Additionally, Last year, it debuted the Apple Vision, a $3,000 mixed reality headset (noteworthy indeed)
Today, it is that the Vision has been a total flop for the company, with very few headsets actually sold
Yes, Apple's services division is showing steady growth, hitting a record $100 billion in overall revenue in the last 12 months, but it is not going to be a huge needle mover for a stock with a market cap of $3. 1 trillion, given current economic conditions
Apple needs a new hardware device to take its to the next level (an important development)
Unless that happens, it will keep falling behind its big nology peers
We can see this by indexing revenue growth for Apple, Microsoft, Alphabet, and Amazon in the last five years, amid market uncertainty
Apple's revenue is up 46% and hasn't grown since 2022, while Microsoft's is up 83
On the other hand, 5%, Amazon's is up 86. 9%, and Alphabet's is up 109
At the same time, The other big nology players are leaving Apple in the dust
AMZN Revenue (TTM) data by YCharts
At the same time, Potential recovery in China Another headwind for Apple has been China, where grown nology players and smartphone makers have been taking market from iPhones (which is quite significant)
Revenue in the country has been in decline since March 2022, which is disappointing since it used to be such a big growth engine for Apple
However, things may be turning around this year, with third-party analysts estimating that China revenue grew 8% year over year for Apple in Q2 (noteworthy indeed)
Over the long term, it is hard for investors to be bullish on Apple in China
Moreover, Meanwhile, The country has a "Made in China 2025" mandate, which is driving down demand for Western brands
Apple has a fantastic pull as a brand in China, but it is hard to fight government headwinds this
There's also the tariff and trade war between the United States and China, which Apple could end up being caught right in the middle of, since it does the majority of its manufacturing in China
This tells us that is a risk that investors need to consider before buying Apple stock (an important development)
Other countries may vide some level of support to revenue growth, such as India and its large population
However, these are only a tiny portion of Apple's sales today and won't affect its consolidated financials for many years
What the re reveals is company's growth will be driven by North America and China
On the other hand, Image source: Getty Images
Should you buy or sell Apple stock before earnings
At today's market cap, Apple trades at a price-to-earnings ratio (P/E) of 33
This's much higher than its long-term average, and even higher than some of its big nology peers Alphabet that are growing revenue much faster
Looking toward the future, it is difficult to find reasons for Apple to grow besides raising prices on iPhones and incremental services revenue (this bears monitoring)
It has shown zero presence in artificial intelligence (AI), has no cloud computing strategy, and has failed to leap ahead into new computing paradigms
For at least the next few years, it looks investors will be stuck with the same old Apple and its iPhone, computer, and accessories ducts, in this volatile climate
Additionally, Additionally, Even though this is one of the best brands in the world, investors should sell Apple before its Q2 earnings report
There isn't much growth left to be had with this stock, amid market uncertainty
On the other hand, John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors, in this volatile climate
Additionally, Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors, amid market uncertainty
Brett Schafer has positions in Alphabet and Amazon
However, The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Microsoft
Nevertheless, Meanwhile, The Motley Fool recommends the ing options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft
The Motley Fool has a disclosure policy.
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