“Apple stock has had a great run year to date, with shares surging about 38% in that time,” Ashraf Eassa writes for The Motley Fool. “The company’s stock has handily outperformed both the Dow Jones Industrial Average and the Nasdaq, which is an incredibly impressive feat given how large Apple’s market capitalization is.”
“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.