Its shares slipped from $399 to around $370 last week amid trader’s concerns over second-quarter earnings. The company is scheduled to report earnings on July 30. Goldman Sachs claims that the recent share price gains are unsustainable and Apple stock price is set to fall. The firm suggested investors to avoid playing with Apple shares. Goldman provided a stock price target of $263, down significantly from the current level. The firm also believes that Apple will not offer second-half guidance due to pandemic. Although the firm shows confidence in Apple’s supply chain and execution, it claims that a one-month iPhone delay could slash FQ1 2021 revenue by 7% and EPS by 6%. Wolfe Research analyst Jeff Kvaal has also painted a bleak outlook for Apple stock price. The firm believes Apple fundamentals are not matching with valuations. The firm has provided a price target of $315 with an underperforming ratings. Smartphone sales volume dropped close to 25% year over year in the second quarter, according to new Counterpoint Research data. The firm estimates that iPhone sales could drop 23% for the second quarter but low-cost iPhone XE supported the volume. The second-quarter consensus revenue estimate stands around $52bn, down sharply from the previous quarter revenue of $58bn. The analysts expect second-quarter earnings per share in the range of $2 compared to $2.55 in the previous quarter.
