Shares of Apple tanked Thursday (June 11) after a week of gains, which were fueled in part by rising analyst optimism over the tech giant’s prospects as the coronavirus pandemic eases.
Apple’s stock price fell 4.8 percent to $335.90 amid a much larger 5.3 percent decline by the Nasdaq Composite index. Apple had posted a 9.5 percent gain over the four previous trading days.
The tech giant fell even as Bank of America, Wells Fargo and HSBC all raised either their ratings or target prices on Apple in recent days, according to Bloomberg, with analysts forecasting a surge in sales growth as the tech company prepares to launch its 5G iPhone in the third quarter.
Industry publications have reported Apple is preparing to start production on its new lineup of 5G iPhones in July, with plans to unveil the new iPhones in September.
While everything from wearables to its new video streaming service are increasingly important to Apple’s bottom line, iPhone sales still provide a huge chunk of the company’s revenues, accounting for more than half of its fiscal 2019 revenue, or $142 billion out of $260 billion.
Bank of America was the latest to jump on the Apple bandwagon, with Analyst Wamsi Mohan boosting his price target to $390 a share, the highest on Wall Street, up from $340 previously. That represents an 11 percent premium over Apple’s current trading price. The BoA analyst is predicting a 20 percent jump on Apple’s product revenue over the next year, led by iPhones and wearables.
Despite Thursday’s pullback, Apple shares have been on a tear since hitting a low of $229.16 a share on March 16 as countries across the world rolled out lockdown measures to prevent the spread of the coronavirus.
Apple’s stock price has since surged, hitting a new 52-week intraday high of $354.77 on Wednesday (June 10).