Apple Downgraded 🔻
Apple had a rough day as its stock fell about 5% on Tuesday, moving closer to its 200-day moving average of $217.02.
The decline came after two major downgrades—Jefferies shifted its rating to Underperform from Hold, and Loop Capital dropped its rating to Hold from Buy with a $230 price target.
Jefferies analysts, led by Edison Lee, lowered their price target for Apple shares to $200.75 from $211.84. The downgrade was driven by weaker-than-expected iPhone sales, challenges in the consumer electronics market, and reduced expectations for the upcoming iPhone 17 and 18 models. A slow uptake of AI and delays in Apple’s advanced packaging roadmap added to the concerns.
Looking ahead, Jefferies predicts Apple will miss its 5% revenue growth guidance for Q1 fiscal 2025 and expects only low-single-digit growth in Q2. While the upcoming SE4 model could bring some year-over-year revenue growth in the June quarter, analysts believe it may struggle to compete with used iPhone Pro models.
Apple’s challenges extend to China, where iPhone shipments fell 18.2% in Q4 2024, according to Counterpoint Research, with Huawei reclaiming the top spot. Changes to China’s smartphone subsidies for 2025 are expected to further pressure demand for high-end iPhones.
Apple is set to release its fiscal Q1 results on January 30, which could provide more clarity. Until then, investors are watching closely as the tech giant navigates a tough start to the year.
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