“It’s always important, though, to understand the factors that can push a company’s stock lower. Having such an understanding isn’t just for short-sellers keeping an eye out for potential catalysts,” Eassa writes. “It’s also critical for those bullish on a stock to understand these factors for risk-management purposes.”
Here are three things that could knock Apple stock down.
1. What if iPhone 8 doesn’t live up to expectations?
2. What if the services biz slows down?
3. What if Apple misjudges iPhone mix?
Read more in the full article here.
MacDailyNews Take: We’d be most concerned about #3, as Apple has misjudged the mix before, as seen with the iPhone 7 Plus which had much higher demand than Apple expected, resulting in prolonged shortages. Of course they’ve likely learned a lesson from that, too, which thereby mitigates our concern.
Apple is not going to screw up their 10th anniversary iPhone and the services business is the closest thing to a perpetual motion machine – and perpetually growing – as we’re likely to ever see.