Apple (NASDAQ: AAPL) head place is located for a NASTY fall. The biggest driver of apple’s modern success is one of the iPhones. This is a game-changing smartphone, which debuted in 2007, sparked years of massive growth, and created a loyal base of customers willing to buy apple products and services. But iPhone sales have slowed as users hold on to their handsets for longer periods between upgrades. However, the AAPL stock news company could be on the brink of a major upgrade cycle with its first 5G iPhones.

Edge Point Of Collapse?

  • So says Goldman Sachs analyst rod hall. On Monday, the hall reiterated his sell rating on apple’s stock and slashed his price forecast from $80 to $75.
  • This new estimate has represented a potential decline of more than 36% from apple’s current price near $118.
  • Investors should be selling apple’s stock, according to analysts at Goldman Sachs. The image source is Getty images.
  • Hall increased his fiscal 2021 earnings-per-share estimate for apple by 4% after its fourth-quarter financial release.
  • However, he reduced the price-to-earnings ratio at which he believes the tech giant’s shares will trade by more than 8%, due in part to lower projected-revenue growth.
  • After listening to apple’s earnings call, the hall expects just single-digit growth for iPhone sales in the first quarter.
  • Apple’s commentary points toward the weaker 5G iPhone cycle we have been forecasting rather than the supercycle expected by consensus.

Should You Sell Apple’s Stock?

  • Hall is one of the biggest apple bears on wall street. His $75 target price is having 39% below the average analyst forecast of $123. The consensus estimate is calling for apple’s stock to rise by roughly 4%.
  • Moreover, while disappointing iPhone sales would no doubt put pressure on apple’s share price. Hall is appearing to be discounting strong sales of Macs and pads during the coronavirus pandemic, as well as apple’s booming services business all of which could be helped to support the AAPL news company’s profit growth.
  • Perhaps most importantly, the hall is seeming to be putting a lot of weight on management’s comments during a single conference call.
  • Investors would likely be better served by focusing on the intriguing potential of ultra-fast, fifth-generation networks, which is promised to boost interest in apple’s new iPhone models in the coming years.
  • So even if iPhone sales come in below expectations in the first quarter, the longer-term view is far brighter.

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Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.