Apple Inc. AAPL 0.17% investors hoping that the unveiling of the new iPhone 8 and iPhone X this month would propel the stock to new all-time highs have been sorely disappointed. Instead, Apple stock is now down more than 7 percent since Apple’s iPhone event on Sept. 12.
4 Pressing Questions, Answered
IPhone bulls are now left with a lot of questions about the stock In a new note to clients Monday, Bernstein analyst Toni Sacconaghiprovided answers to four of the most pressing questions about Apple:
1. What the heck is going on with Apple stock?
According to Sacconaghi, sentiment related to Apple stock has taken a hit due to three negative headlines since the iPhone launch. First, the Apple Watch 3 has gotten bad reviews. Second, rival Alphabet Inc GOOG 0.38% GOOGL 0.32% bought HTC’s Pixel business for $1 billion, which some see as a threat to Apple. Finally, initial iPhone 8 preorder numbers have been on the soft side.
2. Is plenty of iPhone 8 supply a bad thing?
Sacconaghi said investors shouldn’t get too worked up about iPhone 8 availability. He said Apple may simply be building as much iPhone 8 supply as possible before it pivots to iPhone X production in coming weeks (see his track record here).
3. Are there any near-term positive catalysts to stop the bleeding?
Sacconaghi said iPhone X preorder numbers in late October, margin guidance for fiscal Q1 and a potential press release on the first 24 hours of iPhone X sales could all serve as bullish near-term catalysts.
4. When will fiscal 2019 become a concern?
Sacconaghi said…
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