Barclays' rating downgrade causes significant drop in Apple's stock value
Following Barclays' downgrading of its rating, Apple's shares experienced a significant decline, resulting in an approximate $90 billion drop in the company's market value. Additionally, concerns were raised regarding the potential impact on the company's revenue of $85 billion. As a result of the downgrade by Barclays, shares of the technology giant Apple saw a sharp decrease.
- Economy
- Agencies and A News
- Published Date: 03:32 | 03 January 2024
- Modified Date: 04:24 | 03 January 2024
Apple's shares sharply declined after Barclays downgraded its rating, causing the company's market value to drop by approximately $90 billion. Meanwhile, it was noted that the company's $85 billion in revenue is at risk.
The shares of the technology giant Apple fell sharply after Barclays downgraded its rating.
Barclays, a British bank, stated that demand for Apple products would weaken in 2024 and lowered its rating. Following the bank's decision, Apple's shares dropped by nearly 3%. The company's shares fell to their lowest level in seven weeks. Thus, approximately $90 billion was wiped off Apple's market value.
Barclays analyst Tim Long stated that the iPhone 15 is lifeless, expressing their belief that the iPhone 16 will be similar. The bank also mentioned that the company is under the radar of US regulators.
The institution lowered its rating on Apple shares from 'neutral' to a lower level and reduced its 12-month price target to $160. It also recommended a 'sell' for Apple shares. The company's shares had risen by nearly 50% in 2023.
$85 BILLION INCOME AT RISK
On the other hand, it was noted that Apple's $85 billion service sector revenue is at risk. In the Financial Times report, it was stated that the company will face a series of lawsuits in 2024.
The report mentioned that the lawsuit filed against Google in the United States poses a threat to Apple. According to the lawsuit, Google paid more than $26 billion in 2021 to become the default search engine on Apple devices and other platforms. If Google loses the lawsuit, Apple's services revenue could take a hit of about one-fourth. The outcome of the lawsuit will be announced in May.
It was also mentioned that the European Union's Digital Services Act could have negative effects on Apple's revenue. The report stated that the company faces antitrust lawsuits from both the US and the EU.