Apple’s shares, represented by the ticker symbol AAPL, have been experiencing a downturn, making it the worst month for the technology giant so far in 2023. Surprisingly, even the introduction of the highly anticipated iPhone 15 hasn’t managed to reverse the trend.
In premarket trading on Thursday, Apple shares saw a marginal increase of 0.3% and were priced at $169.99. However, the previous day had witnessed the stock closing at its lowest point since the beginning of May.
Throughout this month, Apple has witnessed a decline of 9.3%, making it vulnerable to achieving its worst monthly performance since December of the previous year when it faced a 12% drop. Furthermore, it is also on track to record its weakest quarter since Q2 of 2022.
The reasons behind this gloomy situation and what lies ahead are worth examining.
John Roque, a senior managing director at 22V Research, reasserts his previous prediction that Apple shares are still undergoing a correction phase following their significant surge over the summer. Roque suggests that the stock might even fall to $150, making this projection based on Apple’s historical corrections after periods of growth.
According to technical-analysis provider Phases & Cycles, charts suggest that Apple was overbought when it reached nearly $200 in July. However, these analysts convey a more positive outlook for the future trajectory of the stock.
“There is strong support around the $165-170 range, and only a sustained decline below this level would be cause for concern. On the other hand, if Apple manages to rise decisively above $190, it would indicate a reestablishment of an uptrend with higher targets,” explains Monica Rizk, an analyst at Phases & Cycles.
In conclusion, Apple finds itself in a period of turbulence, with its shares struggling and the much-anticipated iPhone 15 unable to provide the boost it desperately needs. As market observers offer differing perspectives on the future of Apple stock, investors and enthusiasts alike eagerly await the next chapter in this ongoing story.
Apple Faces Challenges with iPhone 15 Pro
Investors who focus on fundamentals may have concerns about Apple, particularly regarding the recent news about the iPhone 15. According to a report from The Wall Street Journal, there are indications that the high-end iPhone 15 Pro is experiencing overheating problems. This information is based on tests conducted and comments received from buyers.
Apple has not provided any official comment to The Wall Street Journal and has yet to respond to inquiries from other sources.
In addition to these issues, Apple is also being impacted by the expectations of a potentially prolonged period of higher interest rates, which is causing a decline in technology stocks. The Nasdaq Composite Index, which includes many technology companies, has fallen by over 9% from its peak in July.
Looking ahead, the next significant development for Apple’s stock will likely be concrete data on demand for the iPhone 15. While initial indications from preorders suggest strong demand across the range, analysts at UBS have noted that some European consumers may choose less expensive devices, while Chinese demand could be influenced by macroeconomic factors. Despite these challenges, UBS maintains a target price of $190 for Apple stock and a Neutral rating.
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