Hedgeye Turns Bearish on Apple With a Fresh Short Idea. It’s Not a Red Flag for AAPL Stock, But It Is Reason for Caution.

The tech sector is heading into the second half of 2026 with investors on edge. The iShares Expanded Tech-Software Sector ETF (IGV) recently fell into bear-market territory, one of its sharpest drops since the financial crisis, after a “death cross” pushed many traders to pull back. Even Microsoft (MSFT), one of the biggest weights in the group, saw shares drop 10% when Azure growth slowed only slightly from 40% to 39%.

Apple (AAPL) had seemed to stand apart from this reset. AAPL stock hit record highs earlier this month, driven by steady iPhone demand and faster growth in its high-margin Services business. But signs of strain are starting to show. Apple now trades at about 36 times forward earnings. That's a rich valuation multiple at a time when rising memory costs are squeezing margins and analysts see earnings growth easing to 10% in fiscal 2027.