Apple shares under pressure? Analyst Craig Moffett advises selling the stock for the first time

• Craig Moffett gives Apple shares a sell rating
• The analyst warns investors that the valuation is too high
• The growth figures are too weak

After months of price growth, Apple receives a rare sell rating from a renowned analyst. Craig Moffett of MoffettNathanson downgraded Apple shares from “neutral” to “sell” in early January 2025 and set a price target of just $188, as reported by Business Insider, among others. This represents a potential decline of approximately 22 percent compared to the price at the time of the downgrade. “This is the first time I’ve given a sales rating for Apple,” Moffett told CNBC Television on January 7, 2025.

Apple shares in a downward trend? Analyst Moffett warns investors about risks

Although Apple shares have fallen by about five percent since the beginning of 2025 (as of January 15, 2025), they rose by almost 19 percent in the second half of 2024, significantly outperforming the S&P 500 during this period. Still, Moffett says concerns are growing. There has been “actually a constant stream of negative news,” the analyst explains in his downgrade, according to Business Insider. These include legal issues, such as a federal judge’s ruling that declared Alphabet’s payments to Apple for Google’s default search engine on iPhones illegal. This decision could cost Apple an important source of revenue.

Weak sales figures: iPhone 16 disappoints

But it’s not just legal challenges that are weighing on the stock. Moffett also reportedly points to weak sales in China and the disappointing performance of Apple’s new Vision Pro headset. “What stands out to me is that Apple is no longer a high-growth company,” he told CNBC Television.

What is most worrying for Moffett, however, are the sales figures for the iPhone 16. Despite new software updates in the area of ​​artificial intelligence (AI), the new iPhone model has not generated the enthusiasm he had hoped for, according to the analyst. “Not only have we seen no sign of an upgrade cycle – which would be worrisome enough – but we’ve seen increasing evidence that consumers are unimpressed with AI capabilities,” Moffett wrote, according to Business Insider. This could slow down Apple’s growth in the long term.

Moffett criticizes: The valuation of Apple shares is “completely excessive”

In addition to the operational difficulties, Moffett is also critical of the high valuation of Apple shares. “The valuation for Apple shares is near historical extremes and it is among the most expensive stocks in the so-called Magnificent Seven,” Moffett continued. What is particularly striking is that Apple’s growth rate is the lowest among large technology companies, which makes the valuation even more questionable. Speaking to CNBC Television, he added that the valuation was “totally stretched compared to the rest of the peer group.”

Apple under fire – High valuation and underestimated risks

“Unfortunately, given this difficult environment, the prospect of Apple’s shares is decidedly unattractive, in our view,” the analyst concluded, according to Business Insider. Nevertheless, he clarifies in an interview with CNBC Television: “I want to underline that this is not a call that says Apple is a bad company. It is a call that says the valuation is too high and that there are legitimate risks that are simply not reflected in the stock today – and that it makes sense for people to be more cautious.”

Moffett’s assessment represents a rather divergent opinion among Wall Street analysts. How the tech giant’s shares will actually develop remains to be seen.

Editorial team finanzen.net

This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.

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