{"id":37481,"date":"2025-03-05T11:38:36","date_gmt":"2025-03-05T11:38:36","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/03\/05\/apple-stock-price-forecast-major-concerns-remain\/"},"modified":"2025-03-05T11:38:36","modified_gmt":"2025-03-05T11:38:36","slug":"apple-stock-price-forecast-major-concerns-remain","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/03\/05\/apple-stock-price-forecast-major-concerns-remain\/","title":{"rendered":"Apple stock price forecast: major concerns remain"},"content":{"rendered":"<div><\/div>\n<p>The Apple stock price has done well in the past decades, transforming it into the biggest company in the world with a market cap of over $3.54 trillion. It has risen by over 38% in the last twelve months, beating several companies in the Magnificent 7. So, is Apple\u2019s valuation justified?<\/p>\n<h2 class=\"wp-block-heading\">Apple is a highly expensive company<\/h2>\n<p>The ongoing Apple stock price surge has helped to make it a highly expensive company with a $3.54 trillion valuation.&nbsp;<\/p>\n<p>This is a hefty valuation considering that the company made a net profit of over $96 billion in the last financial year.&nbsp;<\/p>\n<p>Apple now has a forward price-to-earnings ratio of <a target=\"_blank\" href=\"https:\/\/seekingalpha.com\/symbol\/MSFT\/valuation\/metrics\">32.54<\/a>, higher than the sector median of 27.37. Its non-GAAP PE ratio is also 32, higher than the sector median of 22.&nbsp;<\/p>\n<p>These valuation metrics are higher than the S&amp;P 500 index average of 21. They are also higher than those of Microsoft, which has a forward P\/E ratio of below 30.<\/p>\n<p>Apple is a good company with some of the best products in the technology sector globally. And to a large extent, it deserves a premium valuation.&nbsp;<\/p>\n<p>However, we believe that Apple\u2019s valuation is stretched since the firm is slowing substantially and is no longer an innovative company.&nbsp;<\/p>\n<p>Apple has become a giant company over the years because of its strong innovation and the quality of its services and products. Recently, however, Apple has largely lost its innovative edge, as <strong>Mark Zuckerberg <\/strong>noted.<\/p>\n<p><iframe loading=\"lazy\" width=\"1280\" height=\"720\" src=\"https:\/\/www.youtube.com\/embed\/2DIhBmDOa8o\" title=\"Mark Zuckerberg SLAMS Apple And Their Monopoly &amp; Explains Their Weakness As A Company\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>The company launched the iPhone in 2007, a product that has become its biggest recenue earner. Over time, the company has launched other numerous products like the iPad, Apple Watch, airpods, and Vision Pro.<\/p>\n<p>Apple Watch and the iPad were highly successful, but the Vision Pro has yet to achieve this success. The company also launched Apple Services, which has become a focus of its operations. Apple Services have become a big part of its business as it generated over $96 billion in annual revenue.&nbsp;&nbsp;<\/p>\n<h2 class=\"wp-block-heading\">Apple\u2019s growth expectation has slowed<\/h2>\n<p>Apple\u2019s <a href=\"https:\/\/invezz.com\/news\/2025\/01\/31\/apple-labeled-a-low-growth-stock-despite-record-q1-margins-heres-why\/\">growth is expected to continue slowing<\/a> in the coming years. Analysts expect that its second quarter revenue will be $94 billion, up by 3.65% from what it made a year earlier.<\/p>\n<p>The company will then make $89.35 billion in the next quarter, a 4% increase from a year earlier. This growth will then bring its annual revenue to $409 billion, followed by $442 billion next year.<\/p>\n<p>The company\u2019s earnings per share (EPS) are <a target=\"_blank\" href=\"https:\/\/finance.yahoo.com\/quote\/AAPL\/analysis\/\">expected<\/a> to be $7.32 this year, up from $6.08 a year earlier.<\/p>\n<p>Apple lacks a clear catalyst to supercharge its stock in the coming years. IDC <a href=\"https:\/\/www.idc.com\/getdoc.jsp?containerId=prAP53217825#:~:text=NEEDHAM%2C%20Mass.%2C%20February%2025,Worldwide%20Quarterly%20Mobile%20Phone%20Tracker.\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">predicts<\/a><strong> <\/strong>that smartphone sales will slow by about 4% this year. And with the next iPhone expected to be similar to the last one, the odds are that its sales will be slow this year.\u00a0<\/p>\n<p>Analysts have a mild expectation about Apple, with the average stock forecast being $252, higher than the current $235. This also explains why Oppenheimer analysts downgraded Apple from outperform to perform. Jefferies also <a href=\"https:\/\/invezz.com\/news\/2025\/01\/21\/apple-gets-another-downgrade-in-jan-analyst-sees-13-percent-downside\/\">downgraded AAPL stock<\/a> to underperform.<\/p>\n<p>Read more: <a href=\"https:\/\/invezz.com\/news\/2024\/08\/31\/apple-stock-price-analysis-can-aapls-valuation-be-justified\/\">Apple stock price analysis: can AAPL\u2019s valuation be justified?<\/a><\/p>\n<h2 class=\"wp-block-heading\">Apple stock price analysis<\/h2>\n<figure class=\"wp-block-image inv-component-break-container size-large\"><figcaption class=\"wp-element-caption\"><a href=\"https:\/\/www.tradingview.com\/symbols\/NASDAQ-AAPL\/\" target=\"_blank\" rel=\"noreferrer noopener\">AAPL<\/a> stock chart by TradingView<\/figcaption><\/figure>\n<p>The daily chart shows that the AAPL share price peaked at $260 in December last year and then retreated to the current $235. It is oscillating at the 50-day and 100-day moving averages and a crucial level that was its highest point on July 15.&nbsp;<\/p>\n<p>The stock remains above the ascending trendline that connects the lowest swings since August last year. Therefore, there is a likelihood that the AAPL share price will continue falling, as sellers target the next support at $223.&nbsp;<\/p>\n<p>The post <a href=\"https:\/\/invezz.com\/news\/2025\/03\/05\/apple-stock-price-forecast-major-concerns-remain\/\">Apple stock price forecast: major concerns remain<\/a> appeared first on <a href=\"https:\/\/invezz.com\/\">Invezz<\/a><\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Apple stock price has done well in the past decades, transforming it into the biggest company in the world with a market cap of over $3.54 trillion. It has risen by over 38% in the last twelve months, beating several companies in the Magnificent 7. So, is Apple\u2019s valuation justified? Apple is a highly <\/p>\n","protected":false},"author":1,"featured_media":37482,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-37481","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-world"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/37481","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=37481"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/37481\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/37482"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=37481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=37481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=37481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}