Oppenheimer's recent downgrade of Apple Inc. has raised concerns about the tech giant's future growth, particularly in the iPhone segment and its AI strategy. The downgrade, which shifts Apple's rating from outperform to perform, highlights challenges such as weakening iPhone sales and increased competition in China. Oppenheimer's analyst Martin Yang pointed out a significant 25% drop in iPhone shipments in China during the fourth quarter and a modest 2% growth forecast for shipments leading into fiscal 2026. These factors, coupled with a lack of compelling AI applications, have contributed to a cautious outlook for Apple, which has seen multiple downgrades from other firms this month.
The Direxion Daily AAPL Bear 1X Shares (AAPD) ETF has responded to these developments, rising 1.75% to $16.30 as of 9:00 AM on Wednesday, January 29.