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Apple's Stock Price Dips Ahead of WWDC as Analyst Issues Rare Downgrade

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Apple shares are trading around 1 percent lower today, just ahead of WWDC 2017, after one analyst issued a rare downgrade of the stock.
"We are downgrading AAPL to Sector Weight and recommend investors reduce position sizes," said Andy Hargreaves, equity research analyst at Pacific Crest Securities, in a note to clients. "We believe AAPL anticipates strong performance in the iPhone 8 cycle, while providing relatively little weight to risks through the cycle or the potential for iPhone sales to decline in fiscal 2019."
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Wall Street remains largely upbeat about Apple's stock heading into the second half of this year, as investors anticipate the so-called "iPhone 8" to be a hit among customers, but Hargreaves believes the stock has limited upside, as he said hype surrounding the hotly-anticipated device appears to be "priced in."

Hargreaves anticipates the upside of the iPhone 8 to be offset by key risks, including the "potential for gross margin pressure, diminishing value of the mobile operating system, and the likelihood for declines in iPhone unit sales beyond the iPhone 8 cycle due to market saturation and elongating."

Hargreaves also believes iPhone sales will likely resume declining in 2019, as the iPhone 8 will result in above-average sales in 2018 that are unlikely to be matched once Apple returns to a normalized upgrade rate, similar to what happened after pent-up demand for the larger-screened iPhone 6 started to fade.

AAPL was trading at $153.85 at the time of publication, after opening at $154.34, but remains only slightly off its all-time high.

Article Link: Apple's Stock Price Dips Ahead of WWDC as Analyst Issues Rare Downgrade
 
Article Link
https://www.macrumors.com/2017/06/05/apple-stock-dips-ahead-of-wwdc/
Why wouldn't the analyst wait a day to see what is announced at WWDC before taking a pretty drastic step? Strange.
 
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Reactions: Brandhouse
I think unlike prior years people have some high expectations of seeing specific hardware announcements.
 
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Reactions: CarlJ
Numbnuts from Wall Street always try to manipulate the price or make some noise at some point.
 
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Reactions: Brandhouse
macOS HIGH SIERRA!?!?!?!

That got to be one of the most stupid names i've ever heard for an OS, with "El Capitan" being a close second.
 
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Reactions: greenmeanie
AMD rises 3% on the news. With the external GPU support and Vega support AMD stock is a BUY at this discount price. I was on the fence but their GPUs are in high demand now from Ethereum miners and Apple.
 
The dongles are here to stay - as Apple shoots itself!
Other than Intel updates (and may be AMD), nothing to see for the person who bought a computer in 2015!
 
KPandian1 said:
The dongles are here to stay - as Apple shoots itself!
Other than Intel updates (and may be AMD), nothing to see for the person who bought a computer in 2015!
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You must have missed how important the changes are in macOS. Instant copy and duplication is going to impossible to live without.

iOS 11 on the iPad is a massive change and finally brings desktop level computing experience to the tablet.
 
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Those analyst are ****s; this was Apple back on form and it was beautiful to see; they really bounced back from the last dud event!

As a Microsoft fan I love it; now we have to step up it up, really starting to enjoy these conferences now!

Well done both companies
 
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moosecat said:
Why wouldn't the analyst wait a day to see what is announced at WWDC before taking a pretty drastic step? Strange.
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I wondered also - but you know what? It is not surprising. Very few "analysts" have been able to see AAPL stock as a value at any time in the last 15 years! I mean hindsight is 20/20, but what genius analysts were passing up AAPL when the P/E was 9 or 10? It tells you a lot. It's a topsy turvy world, and it makes for lots of good opportunities.

At this point when AAPL stock drops I check the options chain. I bought some $157.50 calls for about 30% less than they were on Friday. It's a bit of a gamble to lose the investment of course. So few people I talk to understand options, but right now this is a great time to buy calls I think. Pick wisely and don't bet more than you can afford. Earlier, I bought June 2 146 calls before the May earnings report and quadrupled my investment. I did have to sweat it out for a few days after earnings as the "analysts" figured out things were not so bad at Apple, but yeah - quadruple! More fun than Vegas.
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mdriftmeyer said:
Price manipulation right on schedule.
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To profit from it, buy some calls. Get your account set up for options and learn.
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stewy said:
Shouldn't somebody here be bragging about how much money they've made on apple stock by now? :D
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Here you go :)
 
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A speaker.... really?? That is gonna drive revenue for the future and the stock.... I think not, for 700.00 for two, you can put a sound system in each room of your house!! They are gonna need another gimmick to drive revenue growth....
 
TheRealDGD said:
A speaker.... really?? That is gonna drive revenue for the future and the stock.... I think not, for 700.00 for two, you can put a sound system in each room of your house!! They are gonna need another gimmick to drive revenue growth....
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Oh I think they might sell quite a few :)

Remember all the cheap "mini notebooks" and "portable DVD players" flooding the markets 10 or 15 years ago? There are bluetooth speakers coming out of everyone's ears. Apple just decided to make a good speaker and throw some "Alexa" stuff on top.

I bet they do sound good
 
TheRealDGD said:
A speaker.... really?? That is gonna drive revenue for the future and the stock.... I think not, for 700.00 for two, you can put a sound system in each room of your house!! They are gonna need another gimmick to drive revenue growth....
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Cheaper than Sonos. I'll wait until I hear it. Unlike you, I'm not clairvoyant.
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augustobt said:
macOS HIGH SIERRA!?!?!?!

That got to be one of the most stupid names i've ever heard for an OS, with "El Capitan" being a close second.
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Are you high?
 
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BuddyTronic said:
Oh I think they might sell quite a few :)

Remember all the cheap "mini notebooks" and "portable DVD players" flooding the markets 10 or 15 years ago? There are bluetooth speakers coming out of everyone's ears. Apple just decided to make a good speaker and throw some "Alexa" stuff on top.

I bet they do sound good
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No doubt they will sound good, it's APPLE, I was more focused on how you are going to get households to shell out that kind of money for multiple pairs or even 1 pair for most homes.. do you have a sound system in every room and will you choose to run to that room to activate Siri on it?? I don't think it will be as Game Changing as the iPod in their revenue stream but time will tell, IMO it will be comparable to Apple TV in terms of their sales/profit growth, it is not a game changer.
 
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