Powell Faces Legal Threat as Markets React Significantly
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 12 2026
0mins
Should l Buy AAPL?
Source: Fool
- Legal Investigation Pressure: Federal Reserve Chair Jerome Powell disclosed that the Department of Justice has opened an investigation into him, leading to a more than 0.5% drop in S&P 500 futures and a 1% decline in Nasdaq at one point, indicating market concerns over policy uncertainty.
- Gold Price Surge: Following the DOJ's actions, investors flocked to safe-haven assets, pushing gold prices to a record high of $4,612, while silver reached $84.69 per ounce, reflecting heightened market anxiety about future economic conditions.
- Google and Walmart Collaboration: At the National Retail Federation annual show, Google announced its Universal Commerce Protocol, planning to leverage its Gemini AI assistant in partnership with Walmart, enhancing both companies' competitive edge in the e-commerce sector.
- Inflation Data Impacting Fed Policy: The December consumer price index (CPI) is expected to remain steady at 0.3% month-over-month and 2.7% year-over-year, which will influence the Fed's interest rate decision on January 28, despite a 95% market expectation for no rate change.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAPL is 299.69 USD with a low forecast of 230.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Analyst Rating
19 Buy
11 Hold
2 Sell
Moderate Buy
Current: 275.910
Low
230.00
Averages
299.69
High
350.00
Current: 275.910
Low
230.00
Averages
299.69
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Cash Flow Status: With capital expenditures projected at $9 billion, the remaining free cash flow will cover both the buyback and approximately $2.6 billion in dividend expenses, demonstrating Disney's ability to maintain healthy cash flow while returning value to shareholders.
- Market Performance: Although Disney's streaming service is growing slowly and its linear networks face challenges, the experiences segment, particularly parks and the rapidly growing cruise business, remains a strong cash cow supporting overall financial performance.
- Long-Term Growth Potential: With the streaming business now profitable and margins improving, alongside guidance for double-digit adjusted earnings per share growth, Disney stands out as a compelling value stock to buy in February.
See More
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- Buyback Program Scale: Disney is guiding for a $7 billion stock buyback in fiscal 2026, which is double the amount from fiscal 2025 and the second-largest annual buyback plan ever, indicating management's confidence in the stock being undervalued.
- Strong Cash Flow: For fiscal 2026, Disney projects $19 billion in cash from operations, leaving $10 billion in free cash flow after $9 billion in capital expenditures to fund buybacks and approximately $2.6 billion in dividend expenses, ensuring the sustainability of the buyback program.
- Impact on Share Count: The $7 billion buyback could reduce Disney's outstanding shares by about 67.5 million, or 3.8% of total shares, significantly enhancing earnings per share and shareholder value, akin to Apple's successful buyback strategy over the past decade.
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See More
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- Long-Term Performance Analysis: Although IEFA excels in the short term, NZAC's return over the past five years is approximately 10% higher, indicating its potential for long-term investment, particularly for investors focused on sustainability.
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