● Covered by 1 source · 1 reportMedium impact1 negative
JP Morgan Lowers Apple Stock Target to $350 Following Q4 2026 Guidance
Key points
- JP Morgan lowered Apple's stock target from $345 to $350.
- Apple reported a 5% drop in iPad revenue.
- Apple warned of worsening memory shortage impacting supply.
- Apple's stock dropped 9.6% after the report.
JP Morgan Adjusts Apple Stock Target
Investment bank JP Morgan has revised its price target for Apple's stock, lowering it from $345 to $350. This change follows Apple's recent quarterly earnings report and subsequent guidance.
The previous target of $345 was set a few weeks prior, valid through December 2027. The updated target reflects new information from Apple's financial disclosures.
Supply Constraints and Revenue Impact
Apple's quarterly report included a warning that a memory shortage will significantly worsen supply constraints during the September quarter. This is expected to particularly affect the iPhone, iPad, and Mac product lines.
These three segments collectively represent approximately 64% of Apple's revenue during its fourth fiscal quarter, indicating a potential substantial impact on overall earnings.
iPad Revenue Decline and Services Slowdown
The report also noted a 5% decrease in iPad revenue. Additionally, Apple addressed a slowdown in the growth of its Services segment.
Factors contributing to the Services slowdown include weaker App Store gaming revenue, regulatory changes in certain countries, and an ongoing dispute with Epic Games, which prevents Apple from collecting commissions on purchases made via external links in the US.
Market Reaction
Following the report, Apple's stock opened down 8.6% and was trading at $301.41, marking a 9.6% drop from the previous day's close. This market reaction occurred shortly after Apple briefly surpassed a $5 trillion market valuation, temporarily overtaking Nvidia as the world's most valuable company.
Apple's stock is now down 11% for the year.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
JP Morgan reduced its price target for Apple's stock from $345 to $350 after Apple reported quarterly results and warned of worsening supply constraints due to a memory shortage. This adjustment reflects concerns over potential revenue impact, particularly for iPhone, iPad, and Mac, which typically account for 64% of Apple's Q4 revenue.