Stock Market

Apple downgrade shock sends tech stocks crashing

Apple (NASDAQ:AAPL) stock ended Thursday down nearly 5% as analysts at Bank of America (NYSE:BAC) downgraded the stock from Buy to Neutral.

The experts pointed to several risks, including a weaker purchase cycle associated with the iPhone 14. They also explained their stance by the tech giant’s decision not to upgrade chips in new smartphones. The lack of chip updates could be holding back sales, experts say.

Bank of America also cut its 12-month target for Apple shares to $160 from $185, which still suggests 12.6% upside from yesterday’s close.

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Given the paucity of analysts’ downgrade forecasts for Apple’s stock, Bank of America’s decision sent shockwaves across the US tech sector, with top-tier stocks plummeting. For example, Microsoft (NASDAQ:MSFT) was down -1.5%, Alphabet (NASDAQ:GOOGL) was down 2.6%, and Amazon (NASDAQ:AMZN) was down -2.7%.

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