Apple shares dropped 2.66% on September 29, closing at $329.40 and falling below the $333 support level. The decline left the stock 4.6% under its September 22 all-time high of $345.34 and marked the weakest showing in the electronic technology sector, even as chipmakers like Broadcom and Micron finished higher.
A CEO's First Big Move
CEO John Ternus, who succeeded Tim Cook on September 1, is planning to cut middle management and engineering program manager positions, according to a Bloomberg report. He may also do away with Apple's long-established spring and fall product launch calendar. The restructuring news landed just weeks into Ternus's tenure and has raised questions about how the company will roll out products going forward. The pullback has erased more than half of the gains Apple made since Ternus took over.
AI Competition in the Crosshairs
Bank of America analyst Wamsi Mohan flagged Meta's Muse AI agent as a competitive threat, warning that Apple could hold onto device sales but lose shopping and referral activity to the new entrant. Mohan still rates Apple a Buy, but his note underscores a growing concern: the company's services revenue—a key growth engine—could face pressure if AI assistants from rivals capture more user engagement. Apple hasn't announced a direct response to Muse.
Stretched Valuation Meets Chart Breakdown
At $329.40, Apple trades at 37.8 times trailing earnings, well above its five-year median of 31. UBS maintains a Neutral rating on the stock with a $296 price target, suggesting further downside from current levels. The technical picture also turned bearish. The daily chart shows a double top pattern with peaks at $344.57 on July 29 and a record $345.34 on September 22. The stock has now lost the $333 zone, which may act as resistance on any recovery attempt.
Price is testing an ascending trendline that held through August and September, aligning with the 0.236 Fibonacci retracement at $328. A daily close below that trendline could expose the 0.382 level near $315. Deeper support sits at the 0.618 golden pocket around $300, which also marks the double top neckline. A break there would confirm the pattern, and the measured move points toward $255—roughly 23% below the current price. The RSI has fallen to about 50, with lower highs across both peaks.
Fundamentals Still Show Strength
The sell-off comes despite solid operating results. Apple reported record June-quarter revenue of $109.4 billion, up 16% year-over-year, with iPhone sales climbing 22%. An Evercore ISI survey of nearly 4,000 US consumers pointed to strong demand for the iPhone 18 Pro, and the foldable iPhone Duo is set to ship in late October. Management did guide gross margin down to between 47% and 48% on rising memory costs, a headwind that could pressure profitability in the near term.
What to Watch Before October 29
Apple reports earnings on October 29, giving investors a clear checkpoint. For the bulls, holding the trendline and reclaiming $333 could reopen a path toward the $345 record ahead of that report. For the bears, a confirmed double top would suggest the stock has much further to fall. Either way, the next few weeks will test whether Ternus's early moves steady the ship or add to the uncertainty.
