Wall Street Confidence in Apple Falls to Lowest Level in Five Years
Shares gained just 0.6% on Thursday but remain down 9% year-to-date, sharply underperforming the Nasdaq 100, which is up 14% YTD.
Quick overview
- Only 55% of analysts currently recommend buying Apple stock, marking a significant decline in sentiment.
- Recent downgrades from investment firms highlight concerns over Apple's innovation and AI positioning.
- Apple's stock has underperformed this year, down 9% compared to a 14% increase in the Nasdaq 100.
- Analysts warn that without meaningful AI breakthroughs, Apple's growth prospects may remain challenged.
Only 55% of analysts now recommend buying Apple stock, a strikingly low figure for the world’s third-largest company.
Apple Inc., the tech giant behind the iPhone, is facing mounting skepticism from Wall Street after receiving two fresh rating downgrades on Thursday. The moves reflect growing concern over the company’s slowing innovation and its lagging position in the fast-moving artificial intelligence race.
Analyst Sentiment Hits a Multi-Year Low
According to Bloomberg data, the average analyst recommendation on Apple stock has dropped to 3.9 out of 5—the weakest reading since early 2020. Just 55% of analysts currently rate the stock a “buy,” far below peers like Nvidia, Microsoft, and Amazon, where over 90% maintain bullish views.
Among the latest downgrades, investment firm DA Davidson cut its rating from “buy” to “neutral,” noting that Apple’s recent product launches failed to ease doubts over its AI positioning. Expectations of a strong AI-driven upgrade cycle “are unlikely to materialize in the near term,” the firm warned. Davidson added that Apple’s new devices, including a slimmer iPhone, “lack inspiration” and are unlikely to change the company’s growth trajectory.
Phillip Securities also lowered its recommendation to “neutral,” citing a 30% rebound in Apple shares since April lows—largely fueled by easing trade tensions—as a reason for a more cautious stance.
Pressures Mount as Stock Lags Behind
The lack of meaningful AI breakthroughs continues to weigh on Apple’s growth prospects, especially against a backdrop of weak demand in China and stagnating sales in key product lines.
Shares gained just 0.6% on Thursday but remain down 9% year-to-date, sharply underperforming the Nasdaq 100, which is up 14% over the same period.
The growing gap underscores the pressure on Apple to refresh its portfolio and reignite excitement among both investors and consumers.
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