Apple Sales Are Dropping — What Does That Mean For Your AAPL Stock?
Written by
Dawn Allcot
Edited by
Nicholas Morine
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Is it time to “hang up” on your Apple investment?
With iPhone sales down for the third straight quarter, Apple’s market cap has fallen from its historic high of $3 trillion down to $2.79 trillion. That’s still a staggeringly large number, but the company lost more than $200 billion during the week beginning Aug. 3, 2023, and $255 billion since July 31, when the company’s market cap hit a record high.
Some experts people are viewing the drop as the start of a “market correction,” with shares down 8.8% this month. Since July, shares are down 9%, just one point away from a technical “correction,” Yahoo Finance reported.
“The move is just knee-jerk August selling after a parabolic run so far this year,” Wedbush analyst Dan Ives told Yahoo Finance.
He likened selling Apple now, in advance of the iPhone 15 launch, to “leaving the Super Bowl at halftime.”
According to Yahoo Finance, Rosenblatt analysts downgraded Apple to neutral from a buy, with a price target of $198. Loop Capital analyst Ananda Baruah also downgraded Apple to hold from a previous buy position, MSN reported.
Apple stock is still up 38% year-to-date and remains a solid investment — particularly compared to the 17% gains for the S&P 500 as a whole, Yahoo Finance reported.
With Apple’s revenue for services at an all-time high of $21.2 billion and a new iPhone launch to come, prospects look bright for the tech giant. Couple these factors with a strong tech market and solid gains in the Nasdaq and the S&P 500, and grabbing more Apple stock almost sounds like a no-brainer. However, if iPhone sales don’t pick up with the next launch, things could get worse before they get better.
Apple bulls like Ives believe it’s worth hanging on. “Bears won this mini battle the last week, but continue to lose the war being bearish on Cupertino,” he told Yahoo Finance.
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