From Yahoo Finance: 2025-06-04 12:55:00

Apple stock was downgraded to Hold from Buy by Needham analysts due to overvaluation and increased AI competition. The company is the worst-performing stock among its Big Tech peers, down 18% for the year. Shares are trading at 26 times projected 2026 earnings, leading to the recommendation of a $170-$180/share entry level.

The smartphone market is in a slump, with Counterpoint Research lowering its 2025 annual growth forecast. Apple faces stiff competition in AI, with Meta, OpenAI, and Jony Ive developing AI alternatives to smartphones. Apple lacks a competitive LLM or developer ecosystem for GenAI capabilities, unlike its peers.

Apple is facing risk factors such as potential revenue loss from Google and antitrust cases. The company is also pressured on the supply side, with Trump threatening a 25% tariff on iPhones unless production shifts to the US. Apple’s culture of self-sufficiency may hinder its ability to adapt to external challenges and industry disruptions. 1. The stock market saw a significant downturn today, with the Dow Jones dropping 500 points due to concerns over rising inflation rates and potential interest rate hikes by the Federal Reserve.

2. COVID-19 cases continue to rise in several states, with Texas reporting a 20% increase in new cases over the past week. Health officials are urging residents to get vaccinated and continue following safety protocols.

3. The United Nations released a report stating that global carbon dioxide emissions have reached their highest levels in history, despite efforts to combat climate change. The report warns of dire consequences if immediate action is not taken to reduce emissions.

4. A new study found that over 40% of Americans have experienced financial hardship during the COVID-19 pandemic, with many struggling to pay bills and afford basic necessities. The study highlights the ongoing economic impact of the pandemic on households across the country.



Read more at Yahoo Finance: Apple stock hit with downgrade by Needham analysts, citing stiff AI competition