Yahoo Finance tech reporter Allie Garfinkle highlights Apple's latest stock downgrade by Loop Capital in connection to supply chain concerns.
Video Transcript
- Loop Capital is hitting Apple with a downgrade from buy to hold, citing the company's quote, risk has increased for its future shipment targets. Yahoo Finance's, Allie Garfinkle joins us now with a full breakdown. So what's this all about?
ALLIE GARFINKLE: First, it's good to be here with you guys in person.
- Good to see you as well.
ALLIE GARFINKLE: But the primary message here is that investors have been hoping that Apple is really airtight, but sales may not be as airtight as they've been hoping. Now, let's go back to kind of Q2, right? We actually saw a sales decline overall. And it's the sort of thing where I want to say that-- this is what it comes down to, I'd say. Loop is worried about shipments, which translates to demand. And we've already seen demand problems and concerns about how Apple's products are faring macroeconomically.
So like Q2, right? iPads were down 13%, Macs were down 31%, and iPhones were up 2%. So there was those iPhone sales really bolstered what they had. However, we're also seeing concerns about supply chain. I think we really need to go back to even last year to understand where this is all going. So what I would say is the primary message of this is that even though Apple's beaten doubts before, and yes, it's a stock where people have really huddled, I think, over the last kind of stretches, they've been thinking about a recession.
Maybe it's time to pump the brakes a little, I'd say, is kind of the message from this note.
- All right. Allie Garfinkle, we're going to continue to watch to see how Apple shares move over the course of today's activity. Thanks so much.
