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Why Apple Stock Is Falling Today: Goldman

Why Apple Stock Is Falling Today: Goldman
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Apple Inc. (NASDAQ: AAPL) shares are falling -- down over 2 percent at one point -- on a day when most peers are in the green. Aside from chatter of a technical correction, the Goldman Sachs desk has shared some commentary on the stock.

The firm said it's "getting questions on rollover" in Apple, adding that there are several factors that might be responsible for the price decline.

See Also: Apple Shares Reach Lowest Level Since March

Goldman's 4 Points

They include the following:

1. "Concerns about Chinese consumer market given recent developments in their market."

2. "Recent reports on underwhelming Watch demand."

3. "Company is in blackout so you won't see as big of buyback bid."

4. "Have seen combination of HF [hedge fund] and MF [mutual fund] long supply over last 2 days."

What To Watch Going Forward, And What To Ignore

It's clear China is having trouble. Slice Intelligence also recently reported Apple Watch sales are down 90 percent since it was first launched.

According to a new TD Ameritrade report, clients at the firm were net buyers of Apple stock last month.

Citigroup also reported last month that Apple has been one of hedge funds' favorite stocks this year.

Trefis reveals iPhone revenue accounts for about 64 percent of Apple's revenue footprint. The Watch, iPhone and Apple TV account for just 4 percent. In other words, subpar Apple Watch sales may draw headlines, but China-related smartphone weakness is the real story to watch going forward.

Latest Ratings for AAPL

Jan 2017BarclaysDowngradesOverweightEqual-Weight
Jan 2017OTR GlobalDowngradesNegative
Jan 2017GuggenheimInitiates Coverage OnBuy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: Goldman desk Goldman SachsAnalyst Color Technicals Analyst Ratings Movers Tech Trading Ideas Best of Benzinga


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