Analysts Think Of This Market Correction On Apple Stock

Analysts Think Of This Market Correction On Apple Stock ...

Get Apple Inc. Reporthas been trading 18% down since 2022, and the S&P 500 is also flirting with bear territory. The marketwide decline has been mainly driven by unfavourable macroeconomic forces and supply chain issues.

Apple appears to be performing well on the back of a business perspective, claiming that it is generating strong demand for its goods and services.

Wall Street''s current tone is bullish with a strong buy rating and an upside potential of 27% on average. Below is what some of the industry''s top analysts think about Apple''s current correction, and where they see the key risks and opportunities.

What Analysts Think About This Market Correction in Figure 1

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Apple Maven''s position on Apple stock has changed, according to an update.

Not A Dot-Com Bubble 2.0

According to Wedbush technology analyst Dan Ives, the correction seen in tech stocks isn''t a second version of the dot-com bubble. However, 2022 might divide the sector into two halves: "clear haves and have nots."

According to the analyst, the strongest tech companies will likely emerge from the current bearish situation even more than before. Some of these candidates include big tech names like Apple, the top pick in Wedbush''s playbook, followed by Microsoft (MSFT) - Get Microsoft Corporation Report, which is considered by the analyst as one of the "safest landing spots for investors" at the moment.

Despite the choppy markets and a darker macro context, Ives said that cyber security, cloud, A.I. (artificial intelligence) and huge data will continue to benefit from strong spending.

Dan Ives said in an interview with Bloomberg that now is the time to look at the issues and select winners.

Concerns Over Regulatory And Macro Risks

Nicolas Cote-Colisson, an HSBC analyst who has a neutral stance on Apple at the moment because of the company''s position on the macro and regulatory landscape, is not so bullish.

The European agreement on the Digital Markets Act (DMA) might imply that Apple must allow users to install apps from outside the App Store, according to an analyst. This headwind is affecting the company''s business model. The new regulation is unlikely to be enforced until 2023.

Cote-Colisson compares high expectations of a sluggish recession that impacts consumer spending and, of course, consumer demand.

Tough Economy, But No Need To Panic

Katy Huberty, a Morgan Stanley analyst, cut her price target on Apple a few weeks ago. Putting her to de-risk her expectations in the June quarter are a challenge, including foreign exchange, the Russian sales restriction, and the closures in China owing to COVID-19.

According to sensors Tower, the analyst encouraged the AppStore''s performance during April. Huberty estimates an increase in revenue of 8% YoY in April, the highest level of the month, compared to the previous quarter, who increased by 6% YoY. That said, the analyst has kept her forecast unchanged at 15% YoY growth for the June quarter.

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(Disclaimers: this is not investment advice. This author may be long one or more stocks mentioned in this report. Aside from the article, affiliate links may be found. These partnerships do not influence editorial content. Thanks for your assistance with Apple Maven.)

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