Will Apple's stock market value plummet?
Revamped Outlook: Could Apple Stock Face a Double-Digit Plunge in 2023? An In-depth Analysis
Things might take a tumble for tech titan, Apple, if analyst predictions hold true. Craig Moffett of MoffettNathanson, known for his insightful financial musings, has expressed concerns about the stock, recently downgrading it to 'Sell' - the first time he's taken such a pessimistic stance. With a projected price target of just 188 USD, that's a hefty drop of over 20 percent from current levels.
But what's causing Moffett's red flags? After all, the stock skyrocketed by nearly 19 percent in the second half of 2022.
Apple's Stormy Horizon
Moffett's gloomy outlook isn't without justification. He points to a waterfall of unfavorable news, such as weak sales in China, underwhelming performance of the Vision Pro headset, and disappointing iPhone 16 sales. The enthusiasm for new AI features seems to have failed to captivate users, with the predicted upgrade cycle yet to materialize.
Adding fuel to the fire, a federal judge's ruling against Alphabet's payments to Apple for the use of Google's standard search engine on the iPhone has been weighing on the stock.
Overvalued Ambitions
However, these hurdles might not be the only cause for concern. Moffett believes that the stock is quite simply overvalued, stating that Apple shares are near historical extremes and belong to the most expensive stocks among the so-called "Magnificent Seven." The growth rate for the company also lags behind its large tech counterparts.
The Wall Street consensus isn't as doom-and-gloom as Moffett's, but the picture isn't entirely rosy either. While 19 analysts still recommend buying, seven advise holding. However, it's worth noting that all three 'Sell' ratings have emerged from recent analyses from the past few weeks. Investors would be wise to keep a watchful eye on the situation.
Perhaps a diversified approach, like the Tech-Giant Index offered by BÖRSE ONLINE, might be a shrewd move right now. This portfolio spreads the risk without ignoring Apple completely.
Note: Both the publisher Börsenmedien AG and its major shareholder, Mr. Bernd Förtsch, have positions in the financial instruments mentioned in this publication or related derivatives that could benefit from the price movement resulting from the publication.
Börsenmedien AG has developed this index and holds the rights to it. The company has entered into a cooperation agreement with the issuer of the displayed securities, under which it grants the issuer a license to use the index. In this context, Börsenmedien AG receives remuneration from the issuer.
We'd also like to note that while Moffett has expressed concerns about overpromising features and refraining from showcasing those not ready for prime time, as well as broader challenges like supply chain issues and tariffs, his specific predictions for 2023 were not available at the time of this writing.
Additional Reading:
- Stock Market Uncertainty: Bracing for Volatility and Navigating the Unpredictable
- Regulatory Waters: Apple's App Store Fees and the Looming Legal Battle
- The AI Revolution: A New Era of Tech Competition and Innovation
Apple's financial future could be at risk, as analyst Craig Moffett of MoffettNathanson has downgraded Apple's stock to 'Sell', citing concerns about weak sales in China, underwhelming performance of the Vision Pro headset, disappointing iPhone 16 sales, and a potential overvaluation of the stock. Furthermore, Moffett believes that Apple shares are among the most expensive among the "Magnificent Seven" tech companies and that the growth rate for the company lags behind its counterparts. Despite this pessimistic outlook, a diversified approach, such as the Tech-Giant Index offered by BÖRSE ONLINE, might offer a practical solution to mitigate risk while still considering Apple as an investment option.
