New York, Jan 29, 2026, 16:24 (ET) — After-hours
- Apple shares climbed roughly 0.6% in after-hours trading, ahead of their quarterly earnings release after the bell
- Apple confirmed it has acquired Q.ai, an Israeli startup specializing in audio AI, though it did not disclose the deal terms
- Options pricing indicates traders expect about a 4% move following earnings
Apple Inc shares (AAPL) climbed 0.6% to $258.19 in after-hours trading Thursday, ahead of the holiday-quarter earnings report. The stock swung between $254.45 and $259.39 during the session, as investors focused on the company’s AI strategy.
U.S. stocks closed mostly lower, weighed down by tech shares, as Microsoft’s decline reignited concerns about the short-term returns on large AI investments. The S&P 500 dipped 0.15%, and the Nasdaq dropped 0.75%, while the Dow managed a slight gain.
Analysts surveyed by LSEG project a 13.8% jump in iPhone sales for Apple’s October-December fiscal first quarter, with total revenue hitting a record $138.43 billion—up 11.4%, boosted by a 14.1% gain in services. Visible Alpha data shows sales in Greater China climbing roughly 15%. “Apple can probably generate a positive return on very little AI investment, thanks to its distribution,” said Gerrit Smit, manager of the Stonehage Fleming Global Best Ideas Equity fund. Rosenblatt Securities noted tight memory supplies but praised Apple’s “great skill in navigating supply chain disruption.” Reuters
Apple announced Thursday it has acquired Q.ai, an Israeli startup specializing in AI-driven audio technology, though it did not reveal the deal’s value. The Financial Times put the price tag close to $2 billion. About 100 Q.ai employees, including CEO Aviad Maizels, are expected to join Apple.
Traders in the options market were snapping up protection ahead of the earnings report, pricing in roughly a 4% swing either way. Options, which allow investors to speculate on or hedge against stock price moves, often serve as a rough barometer of expected volatility.
Costs factor heavily into the equation. On Thursday, Samsung Electronics and SK Hynix flagged tightening supplies of traditional DRAM, as production pivots toward high-bandwidth memory — the more sophisticated chip powering AI servers. “PC and mobile customers are having difficulties securing memory supplies,” said Park Joon Deok, SK Hynix’s head of DRAM marketing, during a call with analysts. Reuters
For Apple, the focus is squarely on margins. Investors are watching closely for signs that rising component costs or supply issues could tighten the screws on iPhone production in the upcoming quarter.
But the setup works both ways. If Apple’s outlook hints that iPhone demand softened post-holidays, or if management emphasizes cost pressures beyond forecasts, the stock could see sharp moves — and not only in the opening minutes.
Another key question is if AI capabilities will drive real upgrades customers are willing to pay for, beyond just buzzworthy software claims. Apple’s Q.ai buy adds both talent and tech to its arsenal, but investors will want to see tangible shifts soon.
When Apple makes a big move, it usually ripples through the market, hitting Alphabet—linked to Apple’s AI ambitions—and the suppliers tied to its handset sales. Microsoft’s strong showing earlier this week has traders bracing for either a solid beat or a disappointing miss.
Apple plans to report earnings after the U.S. market closes, with its conference call scheduled for 5 p.m. ET.
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