Apple suffers a second stock downgrade and worries about the iPhone grow

Apple Inc. It was already the action of a large technology company less desirable on Wall Street. The crescents concerns about iPhone sales have caused a second sale this weekwhich consolidates the cautious approach of analysts.

Harsh Kumarof Piper Sandler & Co.cut its rating for Apple on Thursday citing a weak macroeconomic environment in China that will curb iPhone demand.

“We are worried by device inventories“Kumar said in a note, and downgraded his recommendation for Apple from overweight to neutral after maintaining a bullish view since March 2020. “Growth rates have already reached their highest level for unit sales”he pointed.

Kumar’s rating downgrade follows move more bearish by their peers at Barclays Plc, where analysts led by Tim Long They lowered their rating to underweight on Tuesday.

As 2024 begins, Apple was already the big technology stock with the fewest bullish recommendationsaccording to data compiled by Bloomberg. Piper Sandler’s Downgrade Now Makes the Company’s Equivalent Buy Ratio fall even furtherand the percentage of analysts optimistic about the company It is at its lowest level in three years.

Apple was theThe only major technology company whose revenue has shrunk over the past four quarters. Currently, Wall Street anticipates revenue growth of just 3.6% in fiscal 2024 and earnings expansion of 7.9%based on the average of analyst estimates compiled by Bloomberg.

A United States court suspended the veto that prohibited the sale of Apple Watch

The action, which had risen almost 50% last yearIt has been collapsed in the first sessions of 2024. It has fallen 4.3% this year, eliminating almost US$130 billion in market valueaccording to data compiled by Bloomberg. Actions now are about to enter oversold territoryas they are expected to extend losses for the fourth consecutive session.

Wall Street, which seems optimistic almost unanimously towards large technology companies, is more cautious when it comes to Apple. The stock has attracted just 33 equivalent buy recommendations. That pales in comparison to Amazon.com Inc.’s 68, Meta Platforms Inc.’s 66 and Nvidia Corp.’s 59.

Translated by Bárbara Briceño.

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