Downgraded Apple Stock Trades Near Bottom of Dow

This is just the latest in a string of bear notes for the FAANG stock

by Karee Venema

Published on Dec 4, 2018 at 10:20 AM

Apple Inc. (NASDAQ:AAPL) is one of the worst performers on the Dow in early trading, after HSBC downgraded the FAANG stock to "hold" from "buy," and cut its AAPL price target to $200 from $205. The brokerage firm said the tech titan's "iconic hardware unit growth is broadly over for now," and that it's "facing the reality of market saturation."

This bear note is just the latest in a string of negative analyst attention the Dow stock has received during its recent slide, but about half of the 28 covering brokerages still maintain a "buy" or better rating on AAPL. Plus, the average 12-month price target of $229.82 is a 26.7% premium to current trading levels.

Short sellers, meanwhile, have been ramping up their exposure to Apple stock, with short interest up 14.6% in the most recent reporting period to 41.79 million shares. However, this is accounts for just 0.9% of the security's available float, and is still near historically low levels for AAPL.

The stock has shed nearly 23% since its Oct. 3 record high of $233.47. Part of this downside came amid concern over stalling iPhone demand, with today's Bloomberg report suggesting Apple is reassigning marketing staff and launching aggressive promo deals to increase iPhone sales only exacerbating this uncertainty. And while the shares bounced off their late-November low near $170, they were swiftly rejected yesterday at $185, home to their Nov. 19 pre-bear gap levels. Year-to-date, AAPL stock remains up 7.1%.

Streaming Stock Sees a Pre-Earnings Lift
Roku stock is well into overbought territory
2 Energy Stocks That Could Fizzle
Crude oil prices are flirting with YTD highs, but these stocks could dip
What to Make of Rising Analyst Buy Ratings
The percentage of "buy" ratings on SPX stocks just surpassed the 2014 peak
START YOUR DAY SMARTER.

Get Schaeffer's pre-market news bulletin every morning before the bell rings.
It's free to sign up.


Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


Man Who Issued 2008 Warning Urging Investors to Act Now
The time to invest is now, according to one economist.
Call Volume Surges During KNDI, BLNK Stock Rallies
Meanwhile, SCHW is in the red after a downgrade
CODI Stock Trims Early Gains After Tilray Deal
The company just sold its hemp foods unit Manitoba Harvest to weed giant Tilray
Man Who Issued 2008 Warning Urging Investors to Act Now
The time to invest is now, according to one economist.