Apple stock drops as analyst calls growth outlook ‘anemic and/or negative’

Apple stock fell again in Tuesday trading after a Wall Street firm lowered its estimates for the company’s March quarter following channel checks that showed lower iPhone sales and weakness in China.
Patrick Seitz for Investor’s Business Daily:
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Needham analyst Laura Martin cut her estimates for Apple’s fiscal second quarter, but maintained her buy rating on Apple stock. She noted that the consumer electronics giant faces significant headwinds.
“Apple’s anemic and/or negative growth outlook, along with expected cost increases to fund GenAI (generative artificial intelligence), are the biggest gating factors preventing new investors from buying AAPL, based on our conversations,” Martin said in a client note.
The channel checks showing lower iPhone sales were partially offset by slightly higher-than-expected revenue from iPad and Mac computer sales.
For the March quarter… she is modeling Apple earnings per share of $1.51, down 1%, on total sales of $90.8 billion, down 4%, for fiscal Q2. Analysts polled by FactSet are looking for earnings of $1.51 a share on sales of $90.7 billion.

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MacDailyNews Note: Martin maintained price target on Apple stock of $220.
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