Apple in trouble, $100 bn wiped off from market cap after stock downgrade by Barclays

Tech Apple in trouble, $100 bn wiped off from market cap after stock downgrade by Barclays Apple's stock fell by 3.6 per cent after Barclays downgraded their stock. This downgrade led to $107 billion to be wiped off from Apple's market cap. This is one of the sharpest dips that Apple has seen in recent months FP Staff January 03, 2024 12:47:00 IST Apple's stock fell by 3.6 per cent after Barclays downgraded their stock.

This downgrade led to $107 billion to be wiped off from Apple's market cap. This is one of the sharpest dips that Apple has seen in recent months Apple Inc. experienced a significant setback as concerns about slowing demand for its latest iPhone led Barclays Bank PLC’s analysts to downgrade the tech giant’s stock.

On Tuesday, Apple shares witnessed their most substantial one day percentage decline since September, falling 3.6 per cent, resulting in a market value loss of over $107 billion. Barclays analysts, led by Tim Long, downgraded Apple’s rating to “underweight” and adjusted the price target to $160, down by $1 compared to the stock’s Tuesday closing price of $185.64.

Related Articles iPhone 16 Pro models to feature larger, virtually ‘bezel less’ displays, bigger batteries in 2024 Rewind 2023: Best Flagship Smartphones launced in India this year The analysts expressed expectations of a reversion in performance, citing a year with missed quarters and the stock outperforming.

They conveyed negative sentiments based on their assessments of volumes and mix for the iPhone 15, with no anticipated features or upgrades likely to make the iPhone 16 more compelling. Apple’s shares had surged approximately 50 per cent to a record high the previous year, propelling its market value to $3 trillion.

Investors had been optimistic that Apple’s flagship device would maintain resilience despite a sluggish economy. However, doubts have surfaced regarding the stock’s ability to replicate such substantial gains, given heightened competition from companies like Huawei Technologies Co. and a Chinese government crackdown on foreign made devices.

The “underweight” rating from Barclays adds to a growing scepticism, as it brings Apple’s total number of sell or equivalent ratings to five, in contrast to 34 buys and 14 holds, according to Bloomberg data. The stock’s recommendation consensus, reflecting the ratio of buy, hold, and sell ratings, stands at 4.08 out of five, marking its lowest since October 2020.

The average analyst price target suggests a modest return of just 7.5 per cent over the next year. (With inputs from agencies) Join our Whatsapp channel to get the latest global news updates Published on: January 03, 2024 12:47:00 IST TAGS: Apple Apple Iphone Apple Stock Barclays.