Apple in trouble, $100 bn wiped off from market cap after stock downgrade by Barclays
Apple Inc. faced a substantial setback on Tuesday as tech giant Barclays downgraded their stock, resulting in a significant drop in Apple’s market value. The downgrade prompted a 3.6 percent decline in Apple’s shares, causing a loss of over $107 billion in market capitalization. This sharp dip is one of the most significant declines Apple has experienced in recent months.
Barclays Bank PLC’s analysts, led by Tim Long, downgraded Apple’s rating to underweight and adjusted the price target to $160. This downgrade reflects the analysts’ concerns about a reversion in performance based on missed quarters and the Apple stock’s outperformance. They also expressed skepticism about the iPhone 15’s potential volumes and mix, as they didn’t anticipate any remarkable features or upgrades that would make the iPhone 16 more compelling.
The downgrade from Barclays comes at a time when doubts have surfaced about Apple’s ability to sustain its remarkable gains. Despite a sluggish economy, Apple’s shares had surged by around 50 percent to a record high. However, increased competition from companies like Huawei Technologies Co. and a Chinese government crackdown on foreign-made devices have cast doubt on future growth.
Barclays’ underweight rating adds to the growing skepticism surrounding Apple’s stock, as it brings the total number of sell or equivalent ratings to five, in contrast to 34 buy ratings and 14 holds, according to Bloomberg data. The current recommendation consensus for Apple’s stock stands at 4.08 out of five, which marks its lowest level since October 2020. Analysts’ average price target suggests a modest return of just 7.5 percent over the next year.
The recent downgrade by Barclays has sent shockwaves through the market, raising concerns among investors and Apple enthusiasts alike. The sharp decline in Apple’s market cap highlights the vulnerability of even the most influential tech giants to fluctuations in investor sentiment.
With ongoing competition and geopolitical challenges, Apple will need to navigate carefully to regain its momentum and win over both investors and consumers. As the tech landscape continues to evolve, Apple faces an uphill battle to maintain its dominance and deliver the innovation that consumers have come to expect.
As always, investors should exercise caution and carefully consider the analysis and recommendations provided by industry experts before making any investment decisions. Apple’s ability to adapt and innovate in a rapidly changing tech environment will ultimately determine its future prospects.
In a world where technology giants like Apple can experience significant setbacks, it serves as a reminder that no company is immune to the ever-changing dynamics of the global market. Investors and consumers alike will be closely watching how Apple responds to this downgrade and whether it can regain its footing in the tech industry.
