![]() ![]() "The first considers the restrictions so far, which affect only China's public employees. "In an attempt to quantify the impact on Apple, we arrived at two scenarios," said Kapulskis in a note to clients on Sept. AAPL 1Y line Kapulskis also speculated that headwinds emanating from China could act as a catalyst for the sell-off. This "hard-to-understand valuation" given the slowdown in growth is one reason to short the stock, according to Kapulskis, who expects shares to fall 9% from current levels toward a price target of $162. Yet, its shares are up nearly 40% this year. The Itau BBA analyst also noted that the iPhone maker has reported two consecutive quarters of declining total revenues and net earnings. However, the Covid-19 pandemic fueled purchases that brought forward demand for iPhones and pushed up the stock to trade at 27 times forward P/E. Why short Apple? Itau BBA analyst Thiago Kapulskis, a noted Apple bear, says the stock historically trades with a price-to-earnings (P/E) ratio - an important metric used by traders to gauge the value of stock - of around 19. The reported restrictions in China, which accounts for around 20% of Apple's revenue, have raised concerns among investors about potential damage to the iPhone maker's business ahead of its "Wonderlust" new iPhone launch event on Tuesday. Personal Loans for 670 Credit Score or LowerĪpple shares fell sharply last week on reports that China is restricting government employees from using iPhones and other Apple devices for work purposes. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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