Why Apple Stock Dropped Today

Apple stock fell 2.3% despite Bank of America analyst Wamsi Mohan reiterating a 'buy' rating and $380 price target. Investors sold off the stock after Mohan warned that rising component costs will reduce gross margins to 36.8% in Q3 2026 and further to 34.1% in Q4, though he expects margins to rebound above 38% in Q1 2027. The stock's valuation at 40x earnings with only 13% long-term growth, combined with CEO Tim Cook's departure, added to investor concerns.