Why Apple Analysts Are Getting More and More Cautious About Its Endless Upside

Technology

Published: May 1, 2016 8:54 am

Last Updated: January 13, 2020 10:04 am

Apple Inc. (NASDAQ: AAPL) endured what many investors are considering its first dismal earnings and revenues report in a decade. It now seems that Apple has found itself without clear direction and without any great new product ideas to drive its growth and cash-printing machine. The world’s largest company by market capitalization issued muted guidance, which was even less than expected.

24/7 Wall St. covered Apple’s earnings report in depth, and it seems like a fundamental shift. Can Apple get away with selling itself as a value stock until its next big thing? Increasing dividends and buybacks might not mask negative growth. It turns out that many of Apple’s analysts have either lowered their ratings or have lowered their price targets and earnings estimates.

One concern that seems unanimous is that Apple’s Watch has not moved the needle at all. Many people who would want the product have turned to other products. Upgrading iPhones and iPads is now a trend that may also take longer than in years past, and the theme of no real product launches for years is becoming more of the norm.

Here is a large portion of the many analyst calls that were positive or negative about Apple since its earnings report.