Apple's stock is under pressure following a downgrade from Jefferies, which shifted its rating to "underperform" and reduced the price target to $200.75. The downgrade was driven by concerns over Apple's revenue trajectory, particularly due to an 18.2% decline in iPhone sales in China during the December quarter. Increased competition from local brands like Huawei, which has gained market share with its Mate 70 series, has contributed to this decline. Additionally, skepticism about Apple's artificial intelligence initiatives and muted consumer enthusiasm for AI-driven smartphone features have added to the negative sentiment. The downgrade comes ahead of Apple's earnings report on January 30, where the company is expected to miss its first-quarter revenue growth forecast.
The Direxion Daily AAPL Bear 1X Shares (AAPD) ETF rose 1.26% to $16.83 at 6:40 AM on Tuesday, January 21.