Apple Stock Drops Over 1% As Goldman Sachs Downgrades It to Neutral From Buy

Tiger Newspress03-01

Goldman Sachs downgraded Apple to Neutral from Buy as part of the firm's "US Conviction List - Directors' Cut" for March. Apple shares dropped 1.5% in morning trading Friday.

Goldman Sachs' “Conviction List - Directors' Cut,” the bank’s selection of top buy-rated stocks, no longer includes Apple, the investment giant said in a Friday note.

Despite the move, analysts at Goldman maintain that the market's emphasis on the deceleration of product revenue growth overlooks the resilience of the Apple ecosystem, along with the stability and predictability of its associated revenues.

“Analysts see Apple’s installed base growth, secular growth in services, and new product innovation as more than offsetting cyclical headwinds to product revenue, such as a reduced iPhone unit demand from a lengthening replacement cycle and reduced consumer demand for the PC & tablet category,” the note states.

Goldman stressed that multiple factors could lead to a stock being removed from their Conviction List such as analysts revising their opinions due to a lack of confidence in their initial assessment or achieving the anticipated price target, among other things.

Meanwhile, Southern Co was also taken off the list, while new additions include Amgen, Monday.com, and Vulcan Materials.

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Comments

  • Eeyore Trade
    03-02
    Eeyore Trade
    Fortunately or unfortunately Apple doesn't talk about it products until they're ready to be released. So not surprising they haven't Benefited from all the AI hype which has been driving things so far. 
  • nywles
    03-02
    nywles
    Thanks 
  • JP24
    03-01
    JP24
    The worst M7 of the year, beating Tesla. At least Tesla is moving now.
    • JP24
      Hopefully.. still waiting for it to hit above 200, then will be bullish alr.
    • Eeyore Trade
      Plenty of year left
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