Why Apple Stock Is Sinking Today
Key Points
Some analysts think that Apple's latest developers conference didn't deliver enough on the AI front.
Concerns about tech valuations and SpaceX's upcoming IPO are also weighing on Apple stock.
Apple (NASDAQ: AAPL) stock is moving lower in Tuesday's trading amid strong bearish action for the broader market. The company's share price was down 4.5% as of 12:55 p.m. ET. The S&P 500 was down 2% at the same point in the daily session, and the Nasdaq Composite had fallen 3.9%.
Apple's share price is under pressure today following some negative reactions to the company's recent developers conference. The market's wavering confidence in the artificial intelligence (AI) chip trade and nervousness ahead of SpaceX's IPO are also factoring into the sell-off.
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Apple's developer conference draws mixed reviews
While some analysts published bullish coverage and raised their price targets on Apple stock in response to the company's developer conference, others were more skeptical. Barclays maintained an underweight rating and a price target of $253 per share on the stock, stating that Siri AI and Apple Intelligence were interesting offerings but maybe not enough to move the needle in a big way.
Along similar lines, UBS published a note maintaining a neutral rating and a price target of $296 per share on the stock and said that it didn't see the new AI announcements being a near-term driver for iPhone sales.
Investors are adopting risk-off positioning
While bullish momentum for AI chip stocks has generally been red hot this year, the market's confidence in the category has been wavering recently. Tech stocks got hit with huge sell-offs on Friday and then saw rebound trading in yesterday's daily session, but the bearish momentum is back on in today's trading.
Along with general concerns about growth-dependent tech valuations, investors are also adopting more cautious stances ahead of SpaceX's initial public offering on Friday. With the company set to hit the market with a $1.77 trillion valuation, tech stocks could see substantial valuation contractions if SpaceX gets off to a rocky start as a publicly traded company.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.