On Monday the shares closed at US$193.12 and fell 0.6% in the premarket and touched a minimum of US$191.75. This cut extends until this session where the papers of the apple company lose 1.9%. In the last five days the shares lose -0.5%.
On Monday at the close of the market, the technology giant made a presentation of what it called “Apple Intelligence,” a voice assistant that examines personal information to help users complete a variety of tasks. Apple partnered with OpenAI for some new AI features that Apple’s own AI couldn’t handle.
On Tuesday, Barclays reaffirmed its “Underweight” rating and $164.00 price target for Apple Inc. The firm’s assessment followed Apple’s annual Worldwide Developers Conference, which began with a keynote speech earlier in the day.
“While Apple’s software and developer support is quite strong, we believe the event was not a catalyst from a stock perspective. since no new hardware was announced and the software features are not significant,” Barclays analysts said.
Apple: the market gives the alliance a thumbs down
Updates presented at the conference included advances in Apple Intelligence, emphasizing privacy as a key aspect of its AI technology. Apple announced the future integration of ChatGPT into its new operating system, with some features expected to be available later this year and additional functionality to be implemented next year. Improvements to Siri were also shown, allowing the voice assistant to query information across various apps and use ChatGPT to help with user queries.
Despite the positive reception to Apple stock over the past two months, driven by the expectation that AI innovations could spur an iPhone upgrade cyclethe Barclays analyst noted that there was no evidence in the conference announcements to support such expectations.
The “Underweight” rating was maintained due to several factors, including potential challenges in maintaining current demand levels, a flat projected cycle for the iPhone 16, regulatory concerns related to the App Store and Google’s (NASDAQ) Traffic Acquisition Costs (TAC), as well as what the firm considers a high valuation for Apple stock.
In other recent news, Apple made significant strides in artificial intelligence (AI) and product advancements. JPMorgan maintains a goal of $225 for Appleciting the company’s AI improvements and their potential to boost the hardware upgrade cycle.
The firm anticipates an iPhone refresh cycle beginning this fall, which is projected to significantly impact Apple’s fiscal 2025 and 2026 volumes. BofA Securities also maintains confidence in Apple, maintaining a “Buy” rating and a $210 price target. The firm anticipates that future iPhone models will be capable of using AI, supporting its optimistic outlook for Apple’s stock performance.
Source: Ambito
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