In a shocking turn of events, Apple faced a dismal start to the new year as its stock price plunged, erasing over $100 billion in market value. The Cupertino-based tech giant experienced a 4% drop in its shares during the first trading session of 2024 after Barclays downgraded the stock to “underweight.” Analysts at Barclays pointed to sluggish sales of iPhones, Macs, and iPads as the primary reasons for the downgrade. The staggering one-day decline amounted to a loss of $107 billion in valuation, a figure surpassing the combined market value of automotive giants Ford and General Motors. This unsettling development raises concerns about the impact of higher interest rates and a slowing economy on the profitability of Big Tech stocks in the coming year.
Barclays not only downgraded Apple but also trimmed its price target for the tech giant, citing lackluster iPhone 15 sales in China and a failure to see a rebound in sales for Macs, iPads, and wearables. This warning from the bank serves as a stark reminder to investors that the combination of rising interest rates and economic deceleration may pose challenges for tech companies, affecting their financial performance as consumers become more cautious with their spending habits. As Apple grapples with these challenges, industry analysts are closely monitoring how the company navigates the headwinds and adjusts its strategies to maintain its market standing amidst a dynamic and evolving economic landscape.