The stock rout on Tuesday erased more than US$100 billion of Apple's market capitalisation, as its shares closed at US$185.64.īarclays downgraded the stock to "underweight" from "neutral" and trimmed its 12-month price target by US$1 to US$160. The business has often outpaced growth in Apple's hardware segment in recent years and now accounts for nearly a quarter of the company's total revenue. The brokerage also warned risks were mounting for Apple's services business, which has come under the scanner in countries including the United States over app store practices. Long is rated four out of five stars for his recommendation accuracy on Apple, according to LSEG data. "The iPhone 15 has been lackluster and we believe iPhone 16 should be the same," Barclays analyst Tim Long said in a client note, pointing to the China weakness as well as subdued demand in developed markets. Its performance in China has also been a worry after the revival of local rival Huawei. Apple rose nearly 50 per cent in 2023, hitting a record high in mid-December in a year when Big Tech led the markets.Īpple has been grappling with a demand slowdown since early last year and has forecast holiday-quarter sales below Wall Street estimates. The stock accounts for a hefty 7 per cent of the S&P 500's market weight - the broader index was dragged 0.56 per cent per cent lower on Tuesday. Apple on Tuesday (Jan 2) fell nearly 3.6 per cent to a seven-week low after Barclays downgraded the shares of the world's most valuable company on concerns that demand for its devices from the iPhone to the Mac will remain weak in 2024.īarclays is the second brokerage to have the equivalent of a "sell" rating on the stock, which now has its most number of bearish recommendations in at least two years, according to LSEG data.
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