- Apple Inc. has been removed from Goldman Sachs Group Inc.’s prestigious list of top buys following a period of stock underperformance, fueled by apprehensions surrounding weaker demand for its flagship products. Despite being featured in Goldman’s 20-25 member “Directors’ Cut” conviction list since its introduction last June, Apple's share price has remained relatively stagnant while the S&P 500 Index has surged by almost 22%. Following its exclusion from the list, Apple's stock dipped by 0.6% on Friday.
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The tech giant has notably trailed behind its Magnificent 7 peers, with its performance falling short of all but Tesla Inc. Mounting concerns over a potential extended slump in iPhone sales, particularly amid ongoing economic challenges in China, have contributed to Apple's lackluster performance in the market. Goldman Sachs highlighted that its Directors’ Cut list undergoes monthly reviews, with stocks being removed if they no longer represent top investment opportunities.
Why it matters
Despite Apple's removal, analysts maintain a buy rating on the company, emphasizing that "the market’s focus on slower product revenue growth masks the strength of the Apple ecosystem and associated revenue durability & visibility," as stated in the broker’s report.
