Anyone with Apple shares in their portfolio should probably pay attention to what just happened to the share prices of the most valuable company in the world.
Overnight, Barclays downgraded the value of stocks in the firm to ‘Underweight,’ falling 3.6% of their value. That’s a seven-week low for Apple as it fights against non-optimal consumer buying power and adverse conditions in certain overseas markets.
Why the drop?
According to Reuters, Apple had a 2023 that saw a 50% rise over the course of the year — but now, Barclays has pointed towards a ‘lackluster’ sales performance from the iPhone 15, and analyst Tim Long reckons that the iPhone 16 is going to be no different.
That doesn’t say much for the continued confidence in the tech giant, and it gets worse from there. China’s markets also pose a threat, especially with the resurgence and power of homegrown Huawei.
Sticking the knife in the side of Apple further are concerns over its services — or, more precisely, the numerous lawsuits around the world over its potentially over-protective practices. That’s fights like the battle against Epic amongst others that threaten to pry open the gates of Apple's very carefully curated garden.
The continued Apple Watch woes are also likely a factor, as Masimo and its blood oxygen sensor controversy resulted in Apple Watches being pulled from Apple Store shelves for a short period in the United States in December. When your stock price is based on how well you sell things, not being able to sell those things isn’t going to help — particularly with the risk-averse stock investor.
Apple will be hoping for a better year this time around, especially now that its stock price has seen such a drop. Maybe that injection of stock juice comes in the form of the anticipated Vision Pro headset — although it's going to have to be really good if it wants to sell enough to make Apple’s stock prognosis any better.
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As iMore's Senior Staff writer, Tammy uses her background in audio and Masters in screenwriting to pen engaging product reviews and informative buying guides. The resident audiophile (or audio weirdo), she's got an eye for detail and a love of top-quality sound. Apple is her bread and butter, with attention on HomeKit and Apple iPhone and Mac hardware. You won't find her far away from a keyboard even outside of working at iMore – in her spare time, she spends her free time writing feature-length and TV screenplays. Also known to enjoy driving digital cars around virtual circuits, to varying degrees of success. Just don't ask her about AirPods Max - you probably won't like her answer.
Time to buy Apple stock it's on sale because some shortsighted finance bro doesn't pay attention to history. This happens every few years and the finance bro's freak out and Apple just keeps rising in value.Reply
Apple has been overvalued IMHO for quite some time. The Vision Pro headset is truly overpriced at $3499, and it has no app ecosystem. The Quest 3 is 1/7 the price of Apple's Vision Pro headset, and it has a huge app ecosystem, as well as support and access to many platforms. Including Windows Desktop, Linux Desktop, Windows VR and AR, Steam VR, Android apps, XBox games, and there is talks of even support for PlayStation games as well. Not to mention the Quest app ecosystem as well.Reply