US investment banks are slowly starting to reduce individual valuations of stocks. Apple fell first. Their valuation changed from neutral to red, indicating that investors should sell these shares as soon as possible.
Apple’s stocks have been taking the lead for years. Goldman Sachs was the first investment bank to undermine the importance of the giant. This is due to the raging crisis surrounding coronavirus disease.
US investment banks: Apple stocks are clear “Sell”
The US bank sent a letter to investors from its funds explaining the downgrading for Apple’s stocks.
The company is failing to renew supply chains that have been cut off due to the closure of the US and China due to the coronavirus crisis. Both production and logistics stand. In addition, fewer people are expected to buy a phone than expected.
We predict a deep decline in demand for new phones that will extend until the second half of 2020. The environment should re-level in the first months of 2021.
The bank also predicts that the price will go down due to consumers’ efforts to save as much as possible. In times of crisis, most consumers across the world reach for a cheaper brand from Asia, such as Samsung.
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