Stocks will fall because sales from their new services will disappoint, according to HSBC Global Research .
Bakhistorien. The Apple stock (ticker: AAPL) has risen more than 25% this year through Tuesday, as the investor's feelings about the strategic shift of services have improved, making it less than $ 13 shy of a $ 1 billion market valuation.
Last month, the company presented a number of new paid services such as Apple TV + (video subscription), Apple Arcade (gaming subscription) and Apple News + (news and magazine subscriptions).
What's new. HSBC Analyst On Wednesday, Erwan Rambourg reduced his rating on Apple Warehouse to reduce from Hold, and predicted that the new service offerings would not attract more buyers to the company's iOS ecosystem.
"Services make the ecosystem more sticky, but will not necessarily allow Apple to recruit more consumers to the iPhone," he wrote. "All in all, we remain far more cautious about services than any of the street numbers may suggest."
The Apple file was down 49 cents to $ 199.01 in Wednesday morning trading. The company did not immediately respond to a request for comment.
The analyst predicts that the recently announced service offerings will lead to just $ 12 billion in revenue by 2024 and generate lower profit margins as opposed to their current services.
After "relative optimism / complacency on the service announcement and sales side, there are now some disadvantages," he wrote.
Looking ahead. Rambourg raised its price target for Apple shares to $ 180 from $ 160, but it still represents 9% down to today's share price.
Last month, Barron's proposed Apple shareholders may want to make some profit due to the disappointing service campaigns and huge share price growth this year.
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