Big tech stocks likely to be under pressure again after Apple shares downgraded
Following a decrease in the big technology stocks which pushed the Nasdaq composite to register its most unproductive week of the year, it is not a surprise that the shares would come under pressure again on Monday after Apple shares were reduced.
Mizuho Securities’ Abhey Lamba reverted the iPhone maker to neutral from buy on Sunday, stating the best thing to happen is priced into the shares. The analyst spoke about an identical issue, with investors taking profits in big technology stocks last week.
“The stock has meaningfully outperformed on a YTD basis and we believe enthusiasm around the upcoming product cycle is fully captured at current levels, with limited upside to estimates from here on out,” wrote Lamba, who reduced his 1 year price goal to $150, which is about 1 dollar over where Apple closed Friday.
A Friday large scale sales of stocks pushed the Nasdaq down by more than 1.5 per cent last week, but the sales were even worst amid the biggest stocks. Microsoft, Apple, Alphabet, Facebook and Amazon lost approximately $100 billion in market value on Friday.
“At 15x and 11x NTM EPS and FCF, the stock is trading near the upper-end of its recent valuation range and we believe it is tough to expect the multiple to expand,” wrote Lamba. “With limited upside to EPS or FCF estimates, we think the stock is fully valued.”
Apple, Facebook and Amazon