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'Zero Innovation': This Analyst Just Downgraded Apple (AAPL) Stock to Sell, Says Shares Could Plunge Over 40%

April 25, 2022 5:35 AM

Global Equities Research analyst Trip Chowdry downgraded Apple (NASDAQ: AAPL) to Sell with a price target of $95.00 per share.

The analyst claims Apple has “zero innovation” with shares mostly supported by buybacks. Moreover, Chowdry adds that the product line is “depleted” as he calls for 0% growth in 2024.

Chowdry lists 9 reasons why he is bearish on Apple stock.

  1. Apple Sales in Ukraine and Russia have been affected in the March Quarter and will continue to be affected until at least the June quarter;
  2. Covid lockdown in Shanghai will impact the March and June quarter results;
  3. Stock Price appreciation based on Stock buybacks, by taking debt, will not work in high-interest rate environment;
  4. AAPL is losing ground in K-12 and higher education market globally;
  5. The innovation pipeline is depleted at AAPL - has zero breakthrough products or services;
  6. Metaverse re-platforming is happening and AAPL will not make it;
  7. AAPL is a more than a Generation behind META, MSFT, IBM, TSLA in artificial intelligence/machine learning (AI/ML);
  8. AAPL developer ecosystem is getting weak; and
  9. Investors optimism on AAPL services revenues is misdirected.

All these factors will contribute to a “downhill journey” for Apple stock with recovery being seen as “extremely difficult.”

Apple stock price closed at $161.79 on Friday and is down a further 1.2% in pre-ope Monday.

Chowdry’s price target implies a downside risk of over 40%.

By Senad Karaahmetovic

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