At the outset of 2024, the brightest beacon on Wall Street is dimmer.
The most valuable company on the market, Apple (AAPL), has experienced a difficult start to the year. The iPhone manufacturer, whose performance significantly influences investor portfolios and accounts for approximately 7% of the weight of the S&P 500 (GSPC) index, received two stock downgrades this week. As a result, shares fell by more than 5% and concerns were raised regarding iPhone demand decreasing.
Barclays delivered the initial strike. The analysts downgraded Apple’s rating to Underweight and reduced their price target to $160, reflecting an approximate 17% decline in the stock price of the technology conglomerate compared to the previous year.
“We rate Apple Under Weight as questions persist about the deterioration of iPhone upgrade demand with rising competition in the premium smartphone segment,” according to the analysts.
The retaliatory blow occurred on Thursday, when Piper Sandler analysts reduced their rating of Apple’s stock from Overweight to Neutral and decreased their price target by $15 to $205. Thursday afternoon saw the price of Apple shares traded at approximately $182.
“As we enter 1H24, we are concerned about handset inventories and also believe that unit sales growth rates have peaked,” said lead analyst Harsh Kumar in a client note. “Deteriorating macro environment in China could also weigh on handset business.”
Bloomberg data indicates that the proportion of analysts holding a favorable rating on the stock is at its lowest level in three years.
