Apple stock price has pulled back this year as concerns about its innovation, growth, and valuation continued. AAPL crashed to $220, about 15% below its highest level in 2024, bringing its market cap to about $3.

Apple shares fell Tuesday after Jefferies downgraded the stock to an “underperform” from “hold” on Monday, noting that flagging iPhone sales and weak demand for its artificial intelligence (AI) features in newer models would lead the tech giant to undershoot quarterly revenue forecasts.

Apple shares edged lower in early Thursday trading, extending a move into correction territory for the world's second-largest tech stock, following a price target downgrade from Goldman Sachs analysts ahead of its December quarter earnings report later next week.

More investors are betting that Apple stock is primed to fall as the iPhone maker’s earnings approach. Short selling involves borrowing stock and selling it at current market value, with the expectation of buying the shares back at a lower price before returning them to the lender.