Market Overview

4 Pressing Questions About Apple's Slumping Stock

4 Pressing Questions About Apple's Slumping Stock

Apple Inc. (NASDAQ: AAPL) investors hoping that the unveiling of the new iPhone 8 and iPhone X this month would propel the stock to new all-time highs have been sorely disappointed. Instead, Apple stock is now down more than 7 percent since Apple’s iPhone event on Sept. 12.

4 Pressing Questions, Answered

IPhone bulls are now left with a lot of questions about the stock In a new note to clients Monday, Bernstein analyst Toni Sacconaghi provided answers to four of the most pressing questions about Apple:

1. What the heck is going on with Apple stock?

According to Sacconaghi, sentiment related to Apple stock has taken a hit due to three negative headlines since the iPhone launch. First, the Apple Watch 3 has gotten bad reviews. Second, rival Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) bought HTC’s Pixel business for $1 billion, which some see as a threat to Apple. Finally, initial iPhone 8 preorder numbers have been on the soft side.

2. Is plenty of iPhone 8 supply a bad thing?

Sacconaghi said investors shouldn’t get too worked up about iPhone 8 availability. He said Apple may simply be building as much iPhone 8 supply as possible before it pivots to iPhone X production in coming weeks (see his track record here).

3. Are there any near-term positive catalysts to stop the bleeding?

Sacconaghi said iPhone X preorder numbers in late October, margin guidance for fiscal Q1 and a potential press release on the first 24 hours of iPhone X sales could all serve as bullish near-term catalysts.

4. When will fiscal 2019 become a concern?

Sacconaghi said it will take at least until the March quarter for investors to get a clear picture of the current iPhone cycle and its potential impact on the 2019 cycle.

Bernstein maintains an Outperform rating and $175 target for Apple.

Related Link: Why Apple Investors Shouldn't Worry About This Sell-Off

Latest Ratings for AAPL

Jul 2020Morgan StanleyMaintainsOverweight
Jul 2020WedbushMaintainsOutperform
Jul 2020CascendMaintainsBuy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings


Related Articles (AAPL)

View Comments and Join the Discussion!

Posted-In: BernsteinAnalyst Color Long Ideas Price Target Reiteration Analyst Ratings Tech Trading Ideas Best of Benzinga

Latest Ratings

CYTKHC Wainwright & Co.Maintains38.0
COLLBWS FinancialInitiates Coverage On8.0
BFYTCanaccord GenuityDowngrades31.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at