“Mizuho Securities’ Abhey Lamba downgraded the iPhone maker to neutral from buy on Sunday, saying the best-case scenario is priced into the shares. The analyst echoed a common concern by investors taking profits in big technology stocks last week,” Melloy reports. “‘The stock has meaningfully outperformed on a YTD basis and we believe enthusiasm around the upcoming product cycle is fully captured at current levels, with limited upside to estimates from here on out,’ wrote Lamba, who cut his 12-month price target to $150, which is about one dollar above where Apple closed Friday.”
“The Nasdaq 100 index dropped more than 1 percent. Shares of Apple were off by more than 3 percent in early trading Monday. Alphabet, Microsoft, Facebook and Amazon all fell by more than 2 percent,” Melloy reports. “A Friday sell-off pushed the Nasdaq down more than 1.5 percent last week, but the selling was worse among the biggest stocks. Apple, Alphabet, Microsoft, Facebook and Amazon lost nearly $100 billion in market value on Friday on no specific headlines, but rather investors questioning whether valuations for the names were getting ahead of themselves.”
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MacDailyNews Take: This too shall pass.