Apple stock just took a significant knock after it was once considered to be the darling of Wall Street.
Apple Stock Valuation
Yesterday (September 29), the rating of the most valuable firm in the United States was changed from “buy” to “neutral” by Bank of America (BofA), which caused its market valuation to decrease by billions of dollars.
The stock of Apple Inc (NASDAQ:AAPL) continues to outperform other companies. When compared to its value at the end of 2021, Apple’s stock is currently worth 20% less than it did then, while the Nasdaq has fallen by 31% over the same time span. However, that is not enough to persuade analysts to maintain their positive outlook.
In a note to clients, BofA analyst Wamsi Mohan said, “We see danger to this outperformance over the next year.” He cited weakening consumer demand as the reason for this prediction. “We anticipate that product development will lag behind service delivery at this point.”
The dismal status of Apple, expressed in numerals. Following the downgrade that was issued by BofA on September 29, the share price of Apple fell by 4.9%. $160 is the new price objective that BofA has set for each share, which is a decrease from $185.
That single day was responsible for a loss to Apple’s market valuation of 120 billion dollars.
According to reports from this week, Apple has decided to abandon plans to manufacture 6 million additional iPhone 14s in the second half of the year.
The iPhone 13 and the new model’s most basic configuration don’t change all that much from one another. The base model of the iPhone is often the greatest seller, but the Pro and Pro Max versions of the iPhone 14 are selling quicker than the base model. However, even these premium models aren’t a major departure from their predecessors due to the company’s conservatism and aversion to risk.
The demand for Apple’s iPhone 14 has also been lackluster in China, which is one of the company’s most crucial markets. According to analysts’ observations, sales projections based on pre-order levels eventually did not materialize.
The Scurrying of Tech Stocks
Investors have been selling stocks at a rapid pace due to the persistent rise in inflation, which has occurred despite numerous increases in interest rates.
After suffering a significant loss, Apple stock was followed by a number of other important American technology businesses in experiencing share price declines.
Even outside the stock exchanges and retail locations, Apple stock is experiencing some difficulties. Its management is in flux. Just within the past few days, a 67-year-old director in Apple’s Intellectual Property Enforcement has sued the company for ageism, and Tony Blevins, the company’s vice president of procurement, is leaving after making an offensive comment in a viral TikTok video about fondling “big-breasted women” for a living.
Featured Image: Megapixl © Max421
Author Marianna Vilchez 
