Apple is in trouble yet again as its shares fell 3% to a seven-week low after Barclays downgraded the tech giant’s stock. Barclays reportedly downgraded Apple’s shares on concerns that demand for the company’s devices will remain weak in 2024. The downgrade has caused more bearish recommendations than Apple has seen in at least two years, according to LSEG data.
This news follows a difficult year for Apple, which saw a decline in sales due to the COVID-19 pandemic. While the company initially bounced back with the release of new products and services, it seems that this momentum may not be sustainable. Apple’s iPhone, one of the company’s most popular products, has reportedly been struggling due to the high prices of its newer models. Meanwhile, the company’s Mac line has also been facing similar issues.
The downgrade from Barclays is especially concerning for Apple, as the bank has been a longtime supporter of the tech giant. The bank downgraded Apple’s stock from “buy” to “hold,” and expressed concern over the company’s ability to compete in an increasingly crowded market. This has prompted many investors to sell their shares in Apple, which is causing the stock to plummet to new lows.
Despite these concerns, Apple CEO Tim Cook remains optimistic about the company’s future. In a recent interview with CNBC, Cook stated that he believes the company’s current product lineup is one of the best it has ever had. He also noted that while sales may decline in the short term, he expects the company’s long-term growth trajectory to remain strong.
However, many industry experts are not convinced. Analysts have long been warning that Apple needs to find a way to differentiate itself from its competitors in order to maintain its dominance in the market. This has proved difficult for the company, as its competitors continue to release new and innovative products.
In the meantime, Apple’s shareholders are left to wonder what the future holds for the tech giant. With more bearish recommendations than the company has seen in at least two years, it seems that the future may be uncertain for Apple. However, only time will tell whether the company can overcome its current challenges and continue its reign as the world’s most valuable firm.
