Apple (AAPL) has received another blow on the stock market, facing its third downgrade in less than two weeks. This time, James Cordwell of Redburn Atlantic has lowered the stock’s value to neutral due to concerns about slowing iPhone sales and potential regulatory challenges. This follows earlier downgrades from Barclays and Piper Sandler at the beginning of the week. Nevertheless, there are still positive sentiments among analysts, with 32 out of 53 maintaining buy ratings for Apple.
The downgrades primarily focus on potential weaknesses in the iPhone and Apple’s services segment, with a particular emphasis on the Chinese market. China is the company’s third-largest source of revenue, and recent studies indicate deteriorating iPhone data in this market. Furthermore, concerns have arisen regarding negative developments related to ongoing patent controversies surrounding the Apple Watch and antitrust battles.
Despite these challenges, Apple also has promising prospects. Analysts suggest that the release of the Vision Pro headset for spatial computing in February may generate significant interest among consumers and business users. Despite the initially high price of the device, the buzz surrounding it could positively impact the company’s stock price.
Moreover, experts believe that 2024 will bring promising results for Apple, thanks to advancements in artificial intelligence (AI) technology and the anticipated revival of laptop and desktop sales. The integration of generative AI into future products and the inclusion of an AI-enabled operating system in Gen-AI’s update cycle could be growth factors.
As the market awaits the release of the Vision Pro headset and assesses Apple’s performance in the coming months, the stock price is likely to experience fluctuations. However, the long-term trajectory of Apple’s stock price remains uncertain.
Read more (Source: Financial Post)
The source of the article is from the blog macnifico.pt