Apple Shares: "The iPhone 15 has been lackluster and we believe iPhone 16 should be the same," Barclays said in a client note, pointing to the China weakness as well as subdued demand in developed markets.
Barclays is the second brokerage to have the equivalent of a "sell" rating on the stock, which now has its most number of bearish recommendations in at least two years, per LSEG data. Apple has been grappling with a demand slowdown since early last year and has forecast holiday-quarter sales below Wall Street estimates. Its performance in China has also been a worry after the revival of local rival Huawei.
The stocks 50% rally this year — driven by investor bets that the iPhone maker will continue to churn out big profits regardless of the health of the economy — has also left it in expensive territory. Its priced at 29 times profits projected over the next year, nearly double its 10-year average valuation.
Apple Inc.: The stock’s 50% rally this year — driven by investor bets that the iPhone maker will continue to churn out big profits regardless of the health of the economy — has also left it in expensive territory. It’s priced at 29 times profits projected over the next year, nearly double its 10-year average valuation.
The combined market value of companies listed in Paris was about $3.2 trillion as of Wednesdays close, versus the technology giants $3.1 trillion, according to an index compiled by Bloomberg. Apple is bigger than all but the six largest stock markets in the world.