Mizuho Securities’ Abhey Lamba clipped his rating for Apple Inc. (NASDAQ: AAPL) to Neutral from Buy. His concern is that all of Apple’s near-term future success is baked into its share price. That share price is up 29% this year and it trades near an all-time high. Lamba wrote:
The stock has meaningfully outperformed on a YTD basis and we believe enthusiasm around the upcoming product cycle is fully captured at current levels, with limited upside to estimates from here on out.
This is not the first recent downgrade of Apple. As the iPhone 8 release nears, experts wonder if what are expected to be spectacular sales can sustain an already sharp share price increase.
Microsoft Corp. (NASDAQ: MSFT) will release its new Xbox One X, which will carry a heavy price tag of $499. Microsoft claims “games will work better than ever” and that its 1080p screen will be brighter. The new Xbox will be release on November 11, just in time for the holiday shopping season.
Uber’s board met to determine whether CEO and founder Travis Kalanick will keep his job. The board hired an outside law firm to examine management and the company’s treatment of employees and drivers. Its findings will be released tomorrow. Uber recently fired several people for their treatment of women.
Voters in Puerto Rico approved a non-binding plan to make the territory a state. It recently filed for bankruptcy.
According to The Wall Street Journal, German discount grocery chain Aldi will open 900 stores in the United States and spend $5 billion over the next five years to pick up market share. It enters a crowded market. Wal-Mart Stores Inc. (NYSE: WMT) has a huge grocery operation. Several nation chains led by Kroger Co. (NYSE: KR) also have a large presence across most of the country. And, local grocers continue to serve every market.