Four reasons that Apple shares have been falling
- Investors are worried about iPhone sales. In September, Apple unveiled a new line-up of products but it isn't clear if that the excitement they generated is translating into sales.
- Apple's high prices could leave it exposed if the economy sours. ...
- Investors aren't confident - yet - about Apple's services business. ...
What would Apple stock be worth if it never split?
Jul 19, 2021 · What happened Apple ( AAPL -2.39% ) is joining in Monday's stock market sell-off. As investors respond to broader pessimism about the global rebound in new coronavirus cases, the tech giant's share...
When will Apple split its stock again?
Investment bank Goldman Sachs reiterated its sell rating on Apple's stock on Tuesday. Analyst Rod Hall believes the tech titan's shares could fall more than 30% to $80, as growth in Apple's...
Why is AAPL stock falling?
Nov 21, 2018 · Apple shares have fallen more than 20% from their October peak With Apple demanding $750 for the cheapest of its new iPhones, it is at risk in the event of a slowdown. And its own sales forecasts...
Should I sell Apple stock?
Nov 19, 2018 · The last time Apple’s product cycle disappointed, its stock fell more than 30%. Investors might want to wait a bit longer before jumping back into depressed Apple stock.
Why is Apple stock going down?
Like many technology companies, Apple has struggled to overcome supply chain bottlenecks during the pandemic. Chip shortages and other supply constraints have driven up Apple's production costs and resulted in lost sales in recent years. Prolonged lockdowns in China could exacerbate these challenges.Mar 14, 2022
Are Apple shares a good buy?
Overall, it's safe to say that Apple's stock is not cheap, but no one can fault an investor willing to pay a premium price for a quality business. For those investors, Apple stock could be a buy right now.Apr 5, 2022
Is it too late to buy Apple stocks?
Since Apple is traded on the Nasdaq exchange, it can be bought or sold between 9:30 a.m. and 4:00 p.m. ET Monday through Friday. However, the Nasdaq does have pre-hours and after-hours trading, which you may be able to access through your online brokerage.Mar 21, 2022
Is AAPL a good long term investment?
A general rule is not to have more than 10% of your total portfolio in one stock. Your short-term goals. While the stock market is considered a proven long-term investment, it is exactly that....Learn MoreLearn MoreLearn MoreFees $0 per tradeFees $0 per trade for online U.S. stocks and ETFsFees $0 per trade4 more rows•Feb 4, 2022
What happened
Shares of Apple ( NASDAQ:AAPL) fell on Tuesday, as a respected investment firm sees substantial downside ahead for investors. As of 10:38 a.m. EDT, Apple's stock was down 3% after falling as much as 6.4% earlier in the day.
So what
Investment bank Goldman Sachs reiterated its sell rating on Apple's stock on Tuesday. Analyst Rod Hall believes the tech titan's shares could fall more than 30% to $80, as growth in Apple's services and wearables segments fail to offset slowing iPhone sales.
Now what
It should be noted that Apple's stock price rose more than 70% since Hall first placed a sell rating its shares back on April 16. So far, he's been quite wrong as to his price forecasts for Apple. His arguments are also a bit puzzling, as they come at a time when Apple is gearing up for what looks to be a powerful 5G-fueled iPhone upgrade cycle.
How has Apple responded to a slowdown in smart phone sales?
In recent years, Apple has responded to a slowdown in smart phone sales by raising prices - a move that has helped the company enjoy record revenues, even while the industry generally contracts.
How much revenue will Apple make in 2020?
It aims to book $50bn in services revenue by 2020, drawing on its large user base.
How much stock did Apple buy back in the quarter?
He also noted that Apple bought back $18 billion worth of stock in the quarter. The company ended the fiscal year with about $98 billion in cash and securities, net of debt.
Is Apple providing financial guidance?
Apple didn’t provide detailed financial guidance in its earnings press release, which isn’t all that surprising; analysts had expected the company might again decline to provide a financial outlook given the ongoing pandemic and the minimal data available so far on sales of the new iPhone 12.
Why is the Chinese economy slowing down?
A slowing Chinese economy means consumers aren’t as willing or able to pay Apple’s steep costs. A strong dollar makes Apple’s devices more expensive abroad. And Apple is facing pushback from the Chinese government, which recently banned some of the company’s services in the country.
Is Apple's growth in China negative?
This time around, however, Apple’s growth in China was negative, dropping 26%. There are multiple potential reasons for this, some of which are outside Apple’s control. A slowing Chinese economy means consumers aren’t as willing or able to pay Apple’s steep costs.
What is Tesla's margin?
Tesla's gross margins are about 20%, compared to Apple's 40%. Operating margins are even lower, typically in the high single digits. Even in optimistic scenarios, the release of a production Apple Car is likely to have only a minor impact on Apple's bottom line.”.
Will iPhone replacement rates be low in 2021?
As a result, iPhone replacement rates should be low in 2021. Still on the same subject, Goldman projects ASP (average selling price) to come down this year, as buyers shift to cheaper models like the iPhone 12 mini and the iPhone 11.
Is the iPhone 12 going to be low in 2021?
According to the research shop, the iPhone 12 resembles a “redesign cycle” rather than a more meaningful “5G super cycle”. As a result, iPhone replacement rates should be low in 2021.
Is Apple Maven upside or downside?
Still, the Apple Maven sees more upside to investing in Apple at current levels than downside risk. In addition to the bullish points on the business fundamentals, the valuation floor and dip-buying opportunity increases the probability that an investment in Apple today will pay off in the long term.
There Are Multiple Signs That iPhone Revenue Growth Continues to Be Anemic, at Best
After AAPL reported that its iPhone revenue had tumbled 15% year-over-year in Q1, AAPL meaningfully cut the devices’ prices in both China and India. The significant price cuts indicate that iPhone sales haven’t exactly made a huge comeback in those countries. The same is probably true for other developing countries.
Even Apple Stock Bulls Are Getting Cautious
For all her optimism about AAPL, Huberty’s price target on Apr. 12 was $220, less than 10% above the current price of AAPL stock. And InvestorPlace’s Tezcan Gecgil recently wrote:
iTunes App Store Workarounds Could Start to Sting Apple Stock
In a column published last November, I noted, citing TechCrunch, that “ Netflix (NASDAQ: NFLX) has reportedly been testing a new system that will prevent its new customers in 33 countries outside the U.S.
The Bottom Line on Apple Stock
The strong headwinds facing Apple stock are likely to come into much greater focus in the wake of the company’s Q2 results, pushing AAPL stock much lower. Meanwhile, even bulls have become cautious about Apple stock at its current, elevated level. Therefore, investors should take profits in AAPL stock ahead of its Q2 results.
