Bloomberg is reporting that Apple has faced a significant setback as Barclays downgraded its stock due to expectations of reduced demand for the latest iPhone model. This downgrade led to a notable decline in Apple’s shares, marking their largest single-day drop since September and erasing a substantial amount of the company’s market value.
Barclays analyst Tim Long spearheaded the decision to downgrade Apple’s rating to underweight. The analysts highlighted concerns in their note, pointing out expectations of a reversion following a period where Apple’s stock had outperformed despite missing most quarters. The Barclays team expressed skepticism regarding the sales volume and mix for the iPhone 15. They also cast doubts on the potential appeal of the iPhone 16, noting a lack of compelling features or upgrades.
Despite Apple’s shares achieving a significant rise last year, reaching a record high and boosting the company’s market value, there are growing doubts about the stock’s ability to replicate such gains. This skepticism is fueled by increasing competition from rivals like Huawei Technologies Co. and the impact of the Chinese government’s crackdown on foreign-made devices.
Currently, Apple has received a mix of ratings from analysts, with a notable number of sell or equivalent ratings. The stock’s recommendation consensus, which reflects the ratio of buy, hold, and sell ratings, has reached its lowest point since October 2020. This shift in analyst sentiment indicates a cautious outlook for Apple’s stock performance in the near future.
What? No one is looking at the upside potential of the Vision Pro? Do I have to use a smiley emoji at this point?
