Investment advisors urge immediate selling.
Stock Market Heroes, Meet the Dreaded Apple Plunge
A brutal blow for tech titans, Apple plummeted over nine percent since the start of the year, dropping another three percent on Tuesday, January 21st. Ouch! What's an investor to do, especially with Q1 earnings coming up on the 30th? Analysts predict a potential major nose-dive for the renowned tech giant.
Cloudy Crystal Ball - Apple Stock Plunging Farther?
Today's market mayhem was set in motion by none other than Jefferies analysts who clearly don't have their Rosy Roses on. They've switched Apple from "Hold" to "Sell" and trimmed their price target from $211.84 to a mere $200.75. What a downer! That suggests a whopping potential drop of about 13 percent!
But what's got 'em in such a sour mood? Well, those Jefferies folks are worried that sales figures and forecasts might not meet expectations this quarter. And with the Apple rally set for January 30th, hang on to your iPhones, Buttercup!
Now, what's disturbed their Zen-like calm? The iPhone's failing sales and the faltering consumer electronics market. Data from "Counterpoint Research" reveals that Apple outright lost ground in China in Q4, with sales tumbling over 18 percent - and Chinese competitor Huawei snatching the top spot. That's a blow, considering China is Apple's second-biggest market behind the U.S.
Jefferies assumes Apple is stepping off its five percent revenue growth target for Q1 2025 and predicts only modest single-digit growth for Q2. But wait, it gets worse - they've reduced their predictions for the iPhone 17/18, citing weak acceptance and commercialization of AI, a key selling point for these models.
Apple (WKN: 865985) - The Silver Lining
Should You Jump Ship or Ride It Out?
Hold up, partner! While the future might look rocky for Apple, investing wizards at BÖRSE ONLINE still reckon it's a "Buy & Hold Forever."
With a bulletproof financial structure, a robust balance sheet, and heaps of cash reserves, Apple can weather the storm and bounce back. Plus, AI advancements have the potential to lure consumers into upgrading their iPhones. Remember, the one and only Warren Buffett himself adores Apple. Our advice? Keep your cool and sail through the turbulence.
More to Chew On: Which Stock's Poised for a Grand Comeback? Novo Nordisk Might Be the Surprise Contender... Or: Sure, Yesterday was Nvidia - this Quantum Computing Stock Could Fly High in 2025, claims AI
The Conflict of Interest Reality CheckThe CEO and chief proprietor of the publisher Börsenmedien AG, Mr. Bernd Förtsch, holds both direct and indirect stakes in various financial instruments mentioned in the article. This includes Apple - a stake that could benefit from the potential price movement following the publication.
- Given the analyst's predictions of a potential drop of about 13 percent for Apple, one might consider re-evaluating their investments in the finance sector, particularly in technology stocks like Apple.
- If you are an Apple investor, the current turbulence might be a good time to reassess your investing strategy, considering the strong financial structure and potential growth of the company, as suggested by analysts at BÖRSE ONLINE.
