Robert Kiyosaki, the author of the best-selling book, “Rich Dad, Poor Dad,” apparently thinks Apple, Inc. AAPL is investment-worthy despite the tech giant’s recent fundamental challenges and the broader market gloominess amid an uncertain economic environment.
What Happened: “Tim Cook dumps his share of Apple. Keybank downgrades Apple. I still love Apple,” said Kawasaki in a post on X, formerly Twitter.
The Japanese-American businessman’s comments came close on the heels of a slew of Apple executives selling shares but the disposal was according to pre-arranged trading plans. Cook alone sold 511,000 shares worth about $87.8 million, his first sale in a little over two years.
On Wednesday, KeyBanc Capital Markets analyst Brandon Nispel downgraded Apple stock from Overweight to Sector Weight, citing four factors, including valuation and soft U.S. trends. The risk-reward proposition for the stock is neutral, given the lack of any meaningful catalyst, Nispel said in the downgrade note.
Kiyosaki said he did not own any Apple stock. “Maybe time to buy Apple if Apple shares drop below $150,” he said.
See Also: Everything You Need To Know About Apple Stock
Why It’s Important: Notwithstanding the duo of negative catalysts, Apple shares closed Wednesday’s session up 0.73% at $173.66, according to Benzinga Pro data. The stock is trading 12.4% off its all-time intraday high of $198.23 hit on July 19 but has gained over 34% so far this year.
The average analysts’ price target, based on data compiled by TipRanks, is $207.69, suggesting a scope for a 19.60% upside.
The reception to Apple’s newest iPhone iterations has been lukewarm. China’s clampdown on banning iPhones from government offices also poses a risk to the uptake of the devices in one of Apple’s key markets. Additionally, Huawei, which was stymied by U.S. bans, has come back with a vengeance and launched a smartphone that has been well-received by Chinese investors.
Apple has been touting developing markets such as India as offering huge sales potential and accordingly channeling resources into these markets.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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