Apple dips in premarket after HSBC downgrade

Business | Technology 12/4/2018, 2:06 PM
Apple dips in premarket after HSBC downgrade

Apple Inc. was looking on Tuesday to reverse a large chunk of the previous day's massive jump, following a bearish update on the target for its stocks and a profit warning by a component maker. HSBC's Erwan Rambourg has downgraded the iPhone maker to hold from buy, citing issues affecting its prospects in emerging market economies. The premarket value dipped as much as 2%.

However, the analyst expressed upbeat sentiment remained for orders in the United States. The outlook was lowered to $200 from $205 per share with an estimate that the potential is stronger in services than hardware. Chip manufacturer Cirrus Logic Inc. is the latest in a group of suppliers to show caution about operations in the near term, while the company run by chief executive Tim Cook has also cooled expectations in a message on November 1.

Apple closed 3.49% in the green yesterday at $184.92 per share, translating to a year-to-date increase of 9.21%. It compares to the Dow Jones Industrial's gain of 4.48%. The tech giant has been challenged in market capitalization leadership in the United States in the past week by Amazon and Microsoft, with several intraday changes in the charts.

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