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 a weaker outlook for iPhone sales over the next 12 to 18 months, driven by increased competition in China and a lack of innovation in AI applications. This sentiment is echoed by other firms, with Apple receiving multiple downgrades this month, reflecting a cautious stance among analysts. Despite these challenges, a majority of analysts maintain a positive outlook on Apple, with 32 out of 48 analysts rating the stock as a buy or strong buy.
The Direxion Daily AAPL Bull 1.5X Shares (AAPU) ETF experienced a decline, dropping 3.22% to $32.48 as of 9:00 AM on Wednesday, January 29.