Apple: when even business partners believe in your fall

9 janv. 2020

We have repeatedly noted that in 2020 the US stock market will begin to adjust. The scale of correction is from 20% and higher. Considering that in recent years, shares of companies in the technology sector of the US stock market have grown by an average of 7-8 times (and some issuers have shown growth of 10 or even 20 times), it is this sector of the US stock market that will undoubtedly become the object of massive sales. But even in a super-overbought market, some stocks are overbought even more.

It's about Apple stocks. We will discuss the fundamental and technical reasons for the appropriateness of the sale of shares in this company in our subsequent reviews. Today we’ll talk about Goldman Sachs forecasts regarding Apple’s future capitalization. Why Goldman Sachs? The point is not even that it is one of the leading investment banks in the world with the best analysts but that GS is Apple partners in the implementation of the Apple Card project. That is, they should be interested in positive forecasts.

So Apple’s business partners expect a third reduction in the shares of the apple company! And they voice the target price in the region of $192 already in 2020.

The reasons for this pessimism, on the one hand, are the unreasonable increase in stock prices in 2019, when the company doubled its capitalization in a year, bringing it to $1.3 trillion (while shares during the fourth quarter grew by 31%). On the other hand, according to Goldman Sachs analysts, there is every reason to believe that financial companies in 2020 will be rather weak and unlikely to exceed the average market performance.

Falling by a third even with a leverage of 1 to 5 is a 150% yield on the deal. If you use the standard leverage of 1 to 100, then we are talking about a fantastic 3000% of the deal. Although there is nothing fantastic about this. And there is a great opportunity for making money.