In a rather surprising development for the tech company, Apple (AAPL) has seen its price target get a cut from Goldman Sachs. Yet, with the company still remaining one of the strongest on Wall Street, investors are left to ask why. Specifically, what could be in store for the company as it enters such a period of uncertainty?
The company has had no shortage of bad news thrust its way in the early weeks of the year. Indeed, it has continued to lose market share in China, which has emerged as a critical and robust market for technology firms. That, aligned with an ongoing Indonesian iPhone ban and regulatory probes, has the stock market concerned over the company’s short-term future.
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Apple Gets Price Target Cut as Bearish Perspective Set in: What to Expect From AAPL
There are few companies that have done better on Wall Street in recent years than Apple. That dominance was expected to continue into 2025. Throughout the final months of last year, experts were saying the iPhone creator had a chance to be the first to reach a $4 trillion market cap.
Yet, things have gotten off to a shaky start. The firm surrendered its position atop the market cap ranking to surging Nvidia (NVDA). Moreover, Apple (AAPL) has recently seen its price target get to buy Goldman Sachs. However, they may not be alone, as they may be speaking to a growing trend.
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The bank decreased its target from $286 to $280, according to a MarketBeat Report. However, that would still be a 25% jump from its current position, while they have maintained a buy rating on the stock. That appears to be an optimistic perspective regarding the firm.
According to CNN data, the stock is expected to underperform the stock market over the next 12 months. Additionally, its financials do not inspire confidence. The company’s net income, earnings per share, and net profit margin are all down 37%, 33%, and 39% from a year ago.
Still, of 51 analysts observed by the platform, 63% have held a buy rating on the stock. Alternatively, just 10% have instituted a sell rating. Additionally, the median price forecast for its performance this year is $250, a 12% jump from its position right now. Currently, the stock is trading at $222 and has dropped less than 1% Thursday.