Apple Inc.
Explore
A Bearish Perspective on Apple Stock
Apple Inc., the tech giant known for its innovative products and services, has been a darling of Wall Street for many years. However, some analysts are turning bearish on the company’s stock. Here’s a closer look at why.
Underperformance in 2023
Despite gaining an impressive 49% in 2023, Apple’s stock was the worst-performing FAANG constituent of the year1. The company reported negative revenue growth in all four quarters of 2023, the first time since 2001 that the company’s revenues fell YoY for four straight quarters1.
Downgrades in 2024
The start of 2024 hasn’t been positive for Apple either, with three brokerages downgrading the stock within the first two weeks of the year1. Redburn, Piper Sandler, and Barclays have all downgraded the stock1. While Redburn and Piper Sandler now rate the stock as a “Hold” or equivalent, Barclays downgraded the stock to a “Sell” equivalent with a Street-low target price of $1601.
Concerns Over iPhone Sales
Some brokerages are turning bearish on Apple amid fears of an extended slowdown in iPhone sales1. Analysts are especially worried about the outlook for iPhone sales in China, which is the company’s third-biggest market behind the U.S. and Europe, and accounted for around 19% of its fiscal year 2023 revenues1. Apple is facing tough competition from domestic Chinese smartphone companies like Huawei and Xiaomi1.
Explore
A Bearish Perspective on Apple Stock
Apple Inc., the tech giant known for its innovative products and services, has been a darling of Wall Street for many years. However, some analysts are turning bearish on the company’s stock. Here’s a closer look at why.
Underperformance in 2023
Despite gaining an impressive 49% in 2023, Apple’s stock was the worst-performing FAANG constituent of the year1. The company reported negative revenue growth in all four quarters of 2023, the first time since 2001 that the company’s revenues fell YoY for four straight quarters1.
Downgrades in 2024
The start of 2024 hasn’t been positive for Apple either, with three brokerages downgrading the stock within the first two weeks of the year1. Redburn, Piper Sandler, and Barclays have all downgraded the stock1. While Redburn and Piper Sandler now rate the stock as a “Hold” or equivalent, Barclays downgraded the stock to a “Sell” equivalent with a Street-low target price of $1601.
Concerns Over iPhone Sales
Some brokerages are turning bearish on Apple amid fears of an extended slowdown in iPhone sales1. Analysts are especially worried about the outlook for iPhone sales in China, which is the company’s third-biggest market behind the U.S. and Europe, and accounted for around 19% of its fiscal year 2023 revenues1. Apple is facing tough competition from domestic Chinese smartphone companies like Huawei and Xiaomi1.