Apple Inc.’s shares plummeted on Tuesday after Jefferies downgraded the company’s stock from “hold” to “underperform”, citing weak iPhone sales and demand for artificial intelligence (AI) features in new models. The downgrade follows a similar move by JPMorgan, which stuck with an overweight call but lowered its price target to $260.
Jefferies analysts believe Apple will miss its first-quarter 2025 revenue guidance of 5% growth due to weak iPhone sales and reduced demand for AI features. They also warned that the company’s guidance for the March quarter could disappoint. JPMorgan, on the other hand, expressed concerns about the strong dollar and flattish unit sales, as well as weak China demand.
The downgrade comes after Apple lost its position as China’s largest smartphone seller last year, according to data from research firm Canalys. The company’s lack of AI-equipped iPhones in China has been a significant issue. As a result, Apple shares have fallen sharply, losing about 3.5% on Tuesday at around $222.40 and nearly 12% in 2025.
Source: https://www.investopedia.com/apple-stock-falls-as-jefferies-downgrades-to-underperform-jpm-lowers-price-target-8777563