Apple Inc. is down 4% already this year owing to concerns over slowing iPhone sales. And, one analyst – Rich Ross of Evercore ISI – citing many technical indicators, say the stock could fall 29% more from the Wednesday levels.
Apple stock to drop further
“Regardless of what you think of the stock, this is not a great chart here. The trend is down in the short term and intermediate term,” Ross told CNBC’s “Trading Nation,” on Wednesday. Ross said the stock appears to be forming head-and-shoulders top, a technical sign suggesting a downward trend after going up briefly.
Further, Ross noted that the stock has failed to move above its 200-day moving average since its August lows. “That’s telling you that the trend just might be down, and that head-and-shoulders top reinforces the gravity in that change,” said Ross.
Ross expects Apple Inc. stock to hit a minimum low of $90. But, considering a drop from highs in 2015, Ross sees a steeper fall to $72. However, long-term Ross is still bullish on the firm, but recommends abandoning the stock as no new products are in the pipeline.
“All is not lost in the stock here. The bigger trend remains higher in the long term. But with a new product not scheduled to be released until September, and the chart showing some real wear, I would be wary of Apple here,” the analyst said.
One more sign of slowing growth
In 2015, Apple said App Store posted record billings of $20bn, but the growth appears to be slowing despite the addition of apps for new devices – Apple TV and Apple Watch. This could be one more sign of slowing down of the phenomenal growth that the firm has been enjoying till now.
For 2014, the firm said its App Store billings were up 50%, but based on the numbers from Apple, it can be seen that for 2015, the growth has come down to around 40%, says a report from the WSJ. However, nothing can be said with surety as the firm has not provided the exact numbers.
For 2014, the firm gave no App Store billings numbers, but said it has grown by 50% from last year i.e. 2013. It did gave a figure of over $10bn for 2013, suggesting the billings to be around $15bn in 2014.
On Monday, Apple Inc. shares closed down 1.96% at $100.70. Last year, the stock lost almost 8% while in the last-month, it is down over 15%.