On Tuesday, Barclays downgraded Apple shares to “underweight” due to weak sales of iPhones, Macs and iPads in the Chinese market, causing the company’s share price to fall 4% and reduce the market value of the corporation.
Analysts at the financial conglomerate predicted that Apple’s share price by the end of the year would be $160, 17% lower than the closing price on Friday before the New Year ($192.5). As a result, the company has already lost around $100 billion in one day on this news, writes Business Insider.
As the analysts of the profile portal suggest, Barclays Bank is thus trying to remind companies that even the largest companies, in a context of rising interest rates and a turbulent economy, can become victims of a sharp drop in the profitability of stocks, especially in the technology sector. sectors.
The publication also recalls that Apple’s rocky start to 2024 followed an equally rocky 2023 for Apple, in which the company’s stock appeared to be growing (and the market cap was approaching $3 trillion), but was going behind other major technological competitors.
Experts attribute this to the decline of the Chinese market: “We continue to see declines in iPhone sales and product mix, as well as a lack of recovery in sales of Macs, iPads and wearable devices in the country,” wrote the Barclays analyst Tim Long.
Author:
Ekaterina Alipova
Source: RB
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