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Apple Inc. (AAPL) Stock: Double Trouble as Legal Woes and Tariffs Hit Tech Giant
In a surprise move, a judge has accused Apple of ignoring an App Store injunction, referring the case to possible criminal contempt charges. This sudden turn of events has sent shockwaves through the market, causing Apple shares to plummet 1.7% in after-hours trading.
The legal woes are not the only concern for investors, as tariff worries continue to mount. At least three Wall Street analysts have cut their price targets on the stock ahead of the company’s March-quarter earnings report, which is set to take place later this week.
According to Loop Capital analyst Ananda Baruah, Apple’s iPhone supply-chain data suggests that the company will struggle in the second half of 2023. This outlook has led him to reduce his price target to $215 from $230, while maintaining a hold rating on the stock.
Meanwhile, Barclays analyst Tim Long has taken an even more bearish stance, cutting his price target to $173 from $197 and maintaining a sell rating. He believes that Apple’s March and June quarters will be “likely okay” due to inventory stockpiling ahead of potential Trump tariffs, but warns that the second half of the year could be more challenging.
Raymond James analyst Srini Pajjuri has also reduced his price target, down to $230 from $250. He believes that any pullback in the stock would be a buying opportunity given Apple’s “unparalleled ecosystem” and “double-digit services growth.” However, he also warns that tariffs could lower Apple’s earnings per share by 8% to 10%.
The company is set to report its fiscal second-quarter results after market close on Thursday. Analysts expect earnings of $1.62 per share on sales of $94.25 billion, representing a year-over-year growth of 6% in earnings and 4% in revenue.
In the face of these challenges, it remains to be seen how Apple will respond. Will the company be able to navigate these legal and logistical hurdles, or will this double trouble prove too much for the tech giant? Only time will tell.
Source: trader Edge
Source: https://coincentral.com/apple-inc-aapl-stock-double-trouble-as-legal-woes-and-tariffs-hit-tech-giant/
