Analyst Laura Martin of Needham has downgraded Apple’s stock to “hold” from “buy”, citing the company’s expensive valuation and growing fundamental headwinds. The iPhone maker’s forward multiple of 26 times earnings is high relative to its Big Tech peers, and Martin believes this premium valuation may be at risk.
The analyst notes that Apple’s competitors, including Meta Platforms and Google, have articulated strategic visions that could potentially displace the company. Google, in particular, is seen as a major threat due to its dominant status in the Android operating system market and significant investment in generative artificial intelligence.
Martin also points out that Apple faces increasing competition and regulatory risks, including slowing smartphone demand, tariff-induced uncertainty, and potential losses of revenue streams such as $20 billion from Google. The analyst believes that Apple may react too slowly to adapt to these changes.
Despite Martin’s downgrade, most analysts covering the stock remain bullish, with 34 rating it a buy or strong buy, per LSEG.
Source: https://www.cnbc.com/2025/06/04/apple-gets-a-rare-downgrade-as-earnings-and-high-valuation-come-under-pressure.html