Apple shares was down by more than 2 percent in the previous session, falling for two consecutive days because of the concerns about the unsustainability of the company’s high stock prices. The iPhone maker’s stock has lost nearly 6.2 percent of its value in just two days.
Apple stocks plunged after Mizuho downgraded the stock to a neutral from buy and lowered its price target to $150 from $160.
The company’s stock fell by 3.9 percent on Friday as major tech stocks suddenly plunged and shares ended the session at 2.39 percent lower when Monday came at $145.42, after hitting a session low of $142.51.
The stock closed the market at $154.99 on Thursday and was considered in the bull before the plunge started the session after.
Abhey Lamba, an technology analyst from Mizuho securities stated the day before this week’s session began that in their belief, the enthusiasm around the upcoming product cycle is fully captures at current levels, with a limited upside.
Lamba also stated that investors already expect strong iPhone 8 sales in the coming product cycle, likely limiting gains in Apple shares and the same consumers driving its stock prices this time around will likely not spend on a new iPhone soon which reduces further the potential growth in fiscal 2018.
Apple, the largest market-cap stock in the S&P 500, ranks third worldwide by the value of short interest in its stock at $9.1 billion.