Apple Suppliers See Share Price Drop As Barclays Downgrades iPhone Maker
Portfolio Pulse from Benzinga Neuro
Barclays downgraded Apple (NASDAQ:AAPL), leading to a share price drop for its suppliers. Taiwan Semiconductor Manufacturing Company (TSMC) and Foxconn (OTC:HNHPF) saw declines of over 2% and 1.33%, respectively. The downgrade was based on anticipated weak demand for future iPhone models. Despite this, some experts predict strong growth for Apple's suppliers, and UBS maintains a buy rating on TSMC with a lowered price target. Apple's services business could also be affected by legal and regulatory decisions in 2024.
January 03, 2024 | 12:38 pm
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NEGATIVE IMPACT
Apple's stock was downgraded by Barclays from Equal-Weight to Underweight with a price target cut to $160, leading to a 3.58% drop in its shares.
The downgrade by a major financial institution like Barclays can have a significant negative impact on investor sentiment and stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Foxconn's shares dropped 1.33% following the downgrade of Apple by Barclays, as it is a major supplier for Apple.
As a key supplier for Apple, Foxconn's financial performance is closely tied to the demand for Apple's products, making it susceptible to negative news regarding Apple.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
Nvidia, also a client of TSMC, may experience indirect effects due to the overall sentiment in the tech and chip sector following Apple's downgrade.
Nvidia is not directly mentioned as being affected by the Apple downgrade, but as a client of TSMC, it could face indirect consequences if the sentiment around tech stocks is dampened.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50