Published: January 3, 2024 at 1:11 p.m. ET
Apple Inc. appears to be in an innovation rut and that’s one reason why an analyst at DA Davidson is taking a cautious view on the stock.
Analyst Gil Luria resumed coverage of Apple AAPL stock on Tuesday with a neutral rating, warning that the company needs to “unblock itself” when it comes to generating exciting new things.
“While Apple has…
Apple Inc. appears to be in an innovation rut and that’s one reason why an analyst at DA Davidson is taking a cautious view on the stock.
Analyst Gil Luria resumed coverage of Apple shares
AAPL
with a neutral note Tuesday evening, warning that the company needs to “unblock itself” when it comes to generating exciting new things.
“While Apple has continued to introduce new form factors, particularly in the wearable category, handset and watch form factors have seemed to stagnate over the past 3-4 years,” Luria wrote. “Meanwhile, other innovative companies are not only introducing new form factors (e.g., AI pin, AR glasses), but also challenging the form of the handset itself (e.g., foldable handsets ).”
Apple shares have gained 47% over the past 12 months, but have seen more moderate performance more recently, rising about 7% over a three-month period and falling about 4% over a period of a month.
The stock experienced its biggest percentage decline in four months on Tuesday after a downgrade from Barclays.
See also: Amazon Stock Could Be Helped by This Secret Weapon in 2024, BofA Says
Apple’s innovation woes are particularly notable these days, as the company faces tougher competition for its core business. Luria notes that in China “local competition has an advantage,” while in India consumers are looking for “more attractive products” given how much of their income they would spend on a big technology purchase.
Could generative artificial intelligence help spark the next big thing for Apple? The company “is able to leverage an unprecedented data set on walled garden consumers to deliver new applications and experiences,” according to Luria, although he questions whether the company would see much success with a hypothetical generative AI app store.
Learn more: Beware as Nvidia and other stocks approach ‘trough of disillusionment’ on GenAI, this analyst warns
Apple shares were down about 1% as of midday Wednesday and are on track to fall for the third straight session.
Published: January 3, 2024 at 1:11 p.m. ET
Apple Inc. appears to be in an innovation rut and that’s one reason why an analyst at DA Davidson is taking a cautious view on the stock.
Analyst Gil Luria resumed coverage of Apple AAPL stock on Tuesday with a neutral rating, warning that the company needs to “unblock itself” when it comes to generating exciting new things.
“While Apple has…
Apple Inc. appears to be in an innovation rut and that’s one reason why an analyst at DA Davidson is taking a cautious view on the stock.
Analyst Gil Luria resumed coverage of Apple shares
AAPL
with a neutral note Tuesday evening, warning that the company needs to “unblock itself” when it comes to generating exciting new things.
“While Apple has continued to introduce new form factors, particularly in the wearable category, handset and watch form factors have seemed to stagnate over the past 3-4 years,” Luria wrote. “Meanwhile, other innovative companies are not only introducing new form factors (e.g., AI pin, AR glasses), but also challenging the form of the handset itself (e.g., foldable handsets ).”
Apple shares have gained 47% over the past 12 months, but have seen more moderate performance more recently, rising about 7% over a three-month period and falling about 4% over a period of a month.
The stock experienced its biggest percentage decline in four months on Tuesday after a downgrade from Barclays.
See also: Amazon Stock Could Be Helped by This Secret Weapon in 2024, BofA Says
Apple’s innovation woes are particularly notable these days, as the company faces tougher competition for its core business. Luria notes that in China “local competition has an advantage,” while in India consumers are looking for “more attractive products” given how much of their income they would spend on a big technology purchase.
Could generative artificial intelligence help spark the next big thing for Apple? The company “is able to leverage an unprecedented data set on walled garden consumers to deliver new applications and experiences,” according to Luria, although he questions whether the company would see much success with a hypothetical generative AI app store.
Learn more: Beware as Nvidia and other stocks approach ‘trough of disillusionment’ on GenAI, this analyst warns
Apple shares were down about 1% as of midday Wednesday and are on track to fall for the third straight session.