• Latest hedge fund filings show Michael Burry takes a bearish position on Apple.
• FXStreet has a $120 price target on AAPL, well below the Wall Street average.
• Apple supplier Foxconn has warned of a revenue drop.

Apple (AAPL) stock recovered some recently lost ground on Tuesday as the broader market finally began its long-awaited recovery. Comments out from Fed members on Tuesday night indicate that the Fed aims to go fast and furious, but then come late summer or September the central bank may begin to pare back the speed of rate hikes to 25 basis points. That has kept bond yields in check, which should help the Nasdaq in particular. Regardless the Nasdaq notched up an impressive gain of nearly 3% on Tuesday, and Apple tacked on a much-needed gain of 2.5% to close at $149.24.

Apple Stock News

We are one of the most bearish forecasts out there for Apple with our $120 price target that we put on the stock back in April. The average price target from Wall Street is $189. However, we received some backing over the weekend with the release of the latest 13f hedge fund filings. While Apple remains top of the pile for Warren Buffet Berkshire Hathaway (BRKB) famed investors Michael Bury has taken a bearish position on Apple (AAPL) stock. Michael Bury's Scion Asset Management has taken out a put position on 206,000 Apple shares according to the latest filings. Apple is down 16% year to date. Foxconn one of Apple's major supply partners recently warned on revenue forecasts as it said inflation was hitting demand for lower price point electronics but had not yet filtered through to the upper end of the market. Foxconn's CEO also said demand in China has slowed due to lockdowns. China is a massive market for Apple.

Adding to the bearishness is Apple has now officially lost its throne as the world's most valuable company to Saudi Aramco. Surging energy prices have boosted the energy sector while as mentioned Apple has slumped 16% this year in a tech sell-off. It's not all bad news however as Dan Ives from Wedbush names Apple as one of the top picks for a recovery in the tech sector.

Apple Stock Forecast

A beautiful playbook so far with Apple retreating and bouncing from key support at $138. The bearish pivot is at $171.40, so there is room for this rally to grow legs, but it is unlikely to breach that level. If Apple does, then all bets are off and we turn bullish. $120 remains our target being the value area from last summer that allowed Apple to consolidate for a move higher.

Apple (AAPL) stock chart, daily