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(Bloomberg) -- Apple Inc. was downgraded to perform from outperform at Oppenheimer, in the latest sign of caution building ahead of the company’s results.
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This is at least the fifth downgrade Apple has received this month, following cuts from Jefferies, MoffettNathanson, Loop Capital, and DBS Bank. The cuts cement Apple’s status as the least-loved megacap except Tesla Inc.
Like the others, Oppenheimer analyst Martin Yang cited concerns over iPhone sales in the downgrade, seeing “a twofold challenge ahead for iPhone growth,” including greater competition in China and a “lack of compelling Apple Intelligence and generative AI apps to accelerate near-term device replacement.”
Independent research indicates that iPhone sales sank 18.2% in China during the December quarter, while global unit sales fell about 5% in the final quarter of last year amid higher China competition.
Shares fell 1.3% on Wednesday. While it remains down 9% from a December record, the stock is coming off a two-day gain of 7%, its largest two-day rally since June. This week’s gain reflects how the emergence of China’s artificial intelligence startup DeepSeek is seen as a positive for Apple, even as it weighed on tech broadly.
Apple reports its first-quarter results after the close on Thursday.
(Updates to market open.)
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