In a note to clients on Monday, Goldman Sachs analyst David Kostin has predicted that Apple will lose more than a third of its value this year. The note predicts that AAPL will fall to $192 this year.
In 2019, Info Tech returned 50%, the best of any sector, and accounted for 32% of the rise in the overall index. Only two other sectors, Financials (+32%) and Communication Services (+33%), outpaced the market,” he wrote in a note to clients.
Kostin says both of those sectors are overvalued based on their likely growth over the next five years.
Foremost among those companies is the biggest name on the market. Apple has doubled in value in a year, stretching its market cap to $1.3 trillion, and Kostin says the rally — which included a 31.5% surge in the fourth quarter — has gone way too far.
Goldman estimates that Apple’s profits will come up well short of Wall Street forecasts this year, and that the tech giant will see its earnings grow at about the same rate as the rest of the market over the next two years.
MacDailyNews Take: iCal’ed™ for future reference.