Apple Loses Its Trillion Dollar Market Cap
Apple stock has been downgraded yet again since its earnings report last week. This is now the second time that analyst has downgraded Apple stock, causing the Apple stock price to fall. Rosenblatt Securities was the analysis form that lowered its predictions for the iPhone production and shipment volumes.
Rosenblatt downgraded Apple shares from a “Buy” rating to “Neutral”, explaining to clients that it will be hard for Apple to make up for lower sales volumes with higher unit prices the second half of 2019.
Analyst Jun Jhang wrote this in Friday’s note regarding Apple shares: “Calendar fourth-quarter guidance reflects our cautious view on weaker than expected sell-through and production reductions for iPhone XS/XR,”. Continuing to say we “downgrade to neutral”.
On Friday, Apple was also downgraded by Bank of America Merrill Lynch.
Apple stock price has been dropping for five consecutive weeks, the fifth being on Friday. The last time Apple posted five consecutive weeks of stock losses was in 2012. On Thursday, Apple announced that it had missed iPhone sales estimates, causing the Apple share price to fall. The company also said that it would no longer be reporting on iPhone unit sales, news which investors were not happy to hear.
Apple stock price fell 2.8 percent on Monday to $201.59 per share, this came shortly after the second downgrade. Since reported earnings last week, Apple share price is down 9.2 percent. Apple stock price dropped below $200 on Monday, this is the lowest NASDAQ:AAPL has traded in over three months, only one session after the company’s market cap fell below $1 trillion.
According to Yahoo Finance, the share price drop was enough to send the market capitalization down to $973.66 billion.
Apple have reported revenue and earnings per share that exceeded Wall Street expectations for Q4 2018. Rosenblatt are still firm with their price target of $200, insinuating a 3.6 percent drop. Bank of America advised clients that there would be declines in app store revenue growth.