Apple lost $100 billion in market value in one day – more than combined worth of Ford and GM – and ‘lackluster’ sales of one gadget are to blame
- Sales of iPhone 15 are ‘lackluster’ according to Barclays analyst – with iPhone 16 set to be low too due to lack of new features
- Barclays cut target price for shares as a result – causing market value to dip
- Issues in China are affecting iPhone sales, and could cause them to fall more
Apple’s share price fell more than four per cent in the past day – wiping more than $100 billion of its market value.
The one-day decline is more than the combined value of Ford and General Motors.
Sluggish sales of the $1,599 iPhone 15 – and fears even the next model due in September will disappoint too – led to Barclays announcing Tuesday it was downgrading the stock.
That caused an immediate 4 percent slide in the share price, which is now hovering around $184 – a seven-week low – after being above $192.
Apple’s valuation fell by $107billion, according to data from Refinitv.
AirBnB, Fed Ex, Citigroup and Starbucks are all worth less than that amount. Together Ford and GM, once two of the biggest companies in the world, are not even worth that amount.
Barclays thinks Apple shares will fall to $160, and advised its clients to sell stock if they have it.
Barclays analyst Tim Long said sales of Apple’s iPhone 15 smartphones have been ‘lackluster’ and the upcoming iPhone 16 ‘should be the same.’
‘We see no features or upgrades that are likely to make the iPhone 16 more compelling,’ the note adds.
Sales of Mac computers and iPads were also weak and revenues from services – for example, fees for iCloud, Apple TV+ and Music – are not expected to grow more than ten per cent.
Source : https://www.dailymail.co.uk/yourmoney/article-12923323/apple-billion-dollar-market-value-loss.html
