Apple Shares Drop Nearly 4% Amid Engineering Setbacks for Foldable iPhone
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy ARM?
Source: CNBC
- Apple Stock Decline: Apple's shares fell nearly 4% on Tuesday, leading the S&P 500 lower, after Nikkei Asia reported setbacks in the engineering test phase for its planned foldable iPhone, which could adversely affect mass production and product shipments.
- Universal Music Group Surge: Shares of Universal Music Group surged almost 13% after hedge fund investor Bill Ackman's Pershing Square Capital Management offered to acquire the company in a cash and stock deal valued at approximately €55.8 billion ($64.4 billion), significantly boosting market expectations for its future.
- Arm Holdings Downgrade: Arm Holdings' stock dropped over 4% following Morgan Stanley's downgrade from overweight to equal weight, citing that the company's strategic pivot to chips amid the AI boom will take time, and near-term risks like rising R&D costs and DRAM shortages could weigh on the stock.
- Healthcare Stocks Bounce Back: Healthcare stocks rallied as the Center for Medicare & Medicaid Services finalized a payment increase for privately run Medicare Advantage plans, exceeding its initial proposal from January, with UnitedHealth jumping 10% and Humana and CVS Health rising 8% and 7%, respectively.
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Analyst Views on ARM
Wall Street analysts forecast ARM stock price to rise
24 Analyst Rating
19 Buy
4 Hold
1 Sell
Strong Buy
Current: 148.770
Low
120.00
Averages
160.58
High
201.00
Current: 148.770
Low
120.00
Averages
160.58
High
201.00
About ARM
Arm Holdings plc is engaged in operating a global computing platform. It architects, develops, and licenses high-performance and energy-efficient Arm compute platforms. The Company’s principal operations and activities are the licensing, marketing, research and development of central processing unit (CPU) design intellectual property (IP), graphics processors, system IP, market optimized platform IP, and associated software, tools and other related services. Its complementary products include GPU and NPU accelerators, interconnect, and others. Its primary product offerings are CPU products that address diverse performance, power, and cost requirements. It offers a family of GPU and NPU products providing efficient computing acceleration and an optimal visual experience across a wide range of devices. Its CPU, GPU, and System IP products integrated into a foundational compute platform optimized for a specific end market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
US Stocks Decline as Oil Prices Surge Amid Iran Tensions
- Market Decline: The S&P 500 Index fell by 0.90%, the Dow Jones Industrial Average dropped by 0.76%, and the Nasdaq 100 Index decreased by 1.40%, reflecting investor concerns over geopolitical tensions, particularly the potential escalation of conflict between Iran and the US.
- Oil Price Surge: Crude oil prices rose over 3% to a four-week high as the market watches for Iran's response to a ceasefire deadline tonight, with failure to reach an agreement potentially leading to broader military conflict and impacting global energy supplies.
- Positive Economic Data: Despite the overall market downturn, February's non-defense capital goods new orders increased by 0.6% month-over-month, surpassing expectations of 0.5%, indicating resilience in US capital spending that could support future market stability.
- Bond Market Reaction: The 10-year Treasury note yield rose to 4.357% as rising oil prices boosted inflation expectations, while the market's diminished outlook for a Fed rate hike reflects investor caution regarding future economic policies.
See More
Morgan Stanley Downgrades Arm Holdings Amid Geopolitical Concerns
- Rating Downgrade: Morgan Stanley analyst Lee Simpson downgraded Arm's stock from overweight to equal weight, setting a price target of $150, reflecting a cautious outlook on the company's future growth prospects.
- Market Reaction: As of 11:35 a.m. ET, Arm's stock is down 5.7%, currently priced at $142.92, with market concerns over geopolitical uncertainty and softening demand exacerbating the stock's pressure.
- Growth Outlook Concerns: The analyst noted that while Arm is making the right moves with its AGI-focused CPU, fiscal 2027 growth could slow due to weakening demand and supply constraints, potentially impacting the company's profitability.
- R&D Spending Impact: As Arm ramps up its R&D spending on AGI CPUs, the analyst believes this could pressure the company's gross margins, prompting investors to monitor how short-term spending increases might affect long-term growth.
See More
Apple Shares Drop Nearly 4% Amid Engineering Setbacks for Foldable iPhone
- Apple Stock Decline: Apple's shares fell nearly 4% on Tuesday, leading the S&P 500 lower, after Nikkei Asia reported setbacks in the engineering test phase for its planned foldable iPhone, which could adversely affect mass production and product shipments.
- Universal Music Group Surge: Shares of Universal Music Group surged almost 13% after hedge fund investor Bill Ackman's Pershing Square Capital Management offered to acquire the company in a cash and stock deal valued at approximately €55.8 billion ($64.4 billion), significantly boosting market expectations for its future.
- Arm Holdings Downgrade: Arm Holdings' stock dropped over 4% following Morgan Stanley's downgrade from overweight to equal weight, citing that the company's strategic pivot to chips amid the AI boom will take time, and near-term risks like rising R&D costs and DRAM shortages could weigh on the stock.
- Healthcare Stocks Bounce Back: Healthcare stocks rallied as the Center for Medicare & Medicaid Services finalized a payment increase for privately run Medicare Advantage plans, exceeding its initial proposal from January, with UnitedHealth jumping 10% and Humana and CVS Health rising 8% and 7%, respectively.
See More
Investors Lose Hope for Iran Deal, Stocks Decline
- Market Sentiment Declines: Stocks fell on Tuesday as investors lost hope for a U.S.-Iran agreement to reopen the Strait of Hormuz, reflecting market sensitivity to geopolitical risks after four consecutive positive sessions for the S&P 500.
- Apple Stock Pullback: Apple shares dropped over 3% following reports of delays in the shipment of the foldable iPhone, leading to a more than 10% decline from its February 6 closing high of $278.12, with Jim Cramer suggesting this dip presents a buying opportunity for new investors.
- Starbucks Strategic Shift: After a nearly 5% rise on Monday, Starbucks shares took a breather on Tuesday following its joint venture with Boyu Capital to sell 60% of its China business, aimed at accelerating long-term growth, with Jim indicating a potential reduction in position if the stock trends higher.
- Rapid Market Recap: Stocks mentioned in Tuesday's rapid-fire segment included UnitedHealth Group, CVS, and Humana, highlighting a focus on a diversified investment portfolio, with Jim Cramer's charitable trust holding positions in AAPL, SBUX, GS, and GOOGL.
See More
US Stocks Decline as Oil Prices Surge Amid Iran Tensions
- Market Decline: The S&P 500 index fell by 0.63%, the Dow Jones Industrial Average dropped by 0.66%, and the Nasdaq 100 index decreased by 0.78%, reflecting investor concerns over geopolitical tensions, particularly the escalating situation in Iran that could impact market stability.
- Surge in Oil Prices: Crude oil prices rose over 2% to a four-week high, with the market closely watching diplomatic efforts ahead of President Trump's deadline, as failure to reach a ceasefire could lead to escalated conflict and further inflationary pressures.
- Supportive Economic Data: February's non-defense capital goods new orders increased by 0.6% month-over-month, surpassing expectations of 0.5%, indicating a rebound in capital spending, although overall market sentiment remains influenced by oil prices and geopolitical factors.
- Interest Rate Expectations Shift: The market is pricing in only a 3% chance of a 25 basis point rate hike by the Fed at the April meeting, reflecting cautious investor sentiment regarding economic outlook, especially in light of rising oil prices potentially driving inflation.
See More
Arm Holdings Shares Drop: Reasons Behind Morgan Stanley's Downgrade of the AI Chip Company.
Arm Holdings' New Strategy: Arm Holdings has announced plans to develop its own data-center chips, marking a significant strategic shift for the company.
Market Analysis: According to Morgan Stanley, this move is logical, but it may take time for shareholders to see the benefits.
See More
US Stocks Decline as Oil Prices Surge Amid Iran Tensions
- Market Decline: The S&P 500 Index fell by 0.90%, the Dow Jones Industrial Average dropped by 0.76%, and the Nasdaq 100 Index decreased by 1.40%, reflecting investor concerns over geopolitical tensions, particularly the potential escalation of conflict between Iran and the US.
- Oil Price Surge: Crude oil prices rose over 3% to a four-week high as the market watches for Iran's response to a ceasefire deadline tonight, with failure to reach an agreement potentially leading to broader military conflict and impacting global energy supplies.
- Positive Economic Data: Despite the overall market downturn, February's non-defense capital goods new orders increased by 0.6% month-over-month, surpassing expectations of 0.5%, indicating resilience in US capital spending that could support future market stability.
- Bond Market Reaction: The 10-year Treasury note yield rose to 4.357% as rising oil prices boosted inflation expectations, while the market's diminished outlook for a Fed rate hike reflects investor caution regarding future economic policies.
See More
Morgan Stanley Downgrades Arm Holdings Amid Geopolitical Concerns
- Rating Downgrade: Morgan Stanley analyst Lee Simpson downgraded Arm's stock from overweight to equal weight, setting a price target of $150, reflecting a cautious outlook on the company's future growth prospects.
- Market Reaction: As of 11:35 a.m. ET, Arm's stock is down 5.7%, currently priced at $142.92, with market concerns over geopolitical uncertainty and softening demand exacerbating the stock's pressure.
- Growth Outlook Concerns: The analyst noted that while Arm is making the right moves with its AGI-focused CPU, fiscal 2027 growth could slow due to weakening demand and supply constraints, potentially impacting the company's profitability.
- R&D Spending Impact: As Arm ramps up its R&D spending on AGI CPUs, the analyst believes this could pressure the company's gross margins, prompting investors to monitor how short-term spending increases might affect long-term growth.
See More
Apple Shares Drop Nearly 4% Amid Engineering Setbacks for Foldable iPhone
- Apple Stock Decline: Apple's shares fell nearly 4% on Tuesday, leading the S&P 500 lower, after Nikkei Asia reported setbacks in the engineering test phase for its planned foldable iPhone, which could adversely affect mass production and product shipments.
- Universal Music Group Surge: Shares of Universal Music Group surged almost 13% after hedge fund investor Bill Ackman's Pershing Square Capital Management offered to acquire the company in a cash and stock deal valued at approximately €55.8 billion ($64.4 billion), significantly boosting market expectations for its future.
- Arm Holdings Downgrade: Arm Holdings' stock dropped over 4% following Morgan Stanley's downgrade from overweight to equal weight, citing that the company's strategic pivot to chips amid the AI boom will take time, and near-term risks like rising R&D costs and DRAM shortages could weigh on the stock.
- Healthcare Stocks Bounce Back: Healthcare stocks rallied as the Center for Medicare & Medicaid Services finalized a payment increase for privately run Medicare Advantage plans, exceeding its initial proposal from January, with UnitedHealth jumping 10% and Humana and CVS Health rising 8% and 7%, respectively.
See More
Investors Lose Hope for Iran Deal, Stocks Decline
- Market Sentiment Declines: Stocks fell on Tuesday as investors lost hope for a U.S.-Iran agreement to reopen the Strait of Hormuz, reflecting market sensitivity to geopolitical risks after four consecutive positive sessions for the S&P 500.
- Apple Stock Pullback: Apple shares dropped over 3% following reports of delays in the shipment of the foldable iPhone, leading to a more than 10% decline from its February 6 closing high of $278.12, with Jim Cramer suggesting this dip presents a buying opportunity for new investors.
- Starbucks Strategic Shift: After a nearly 5% rise on Monday, Starbucks shares took a breather on Tuesday following its joint venture with Boyu Capital to sell 60% of its China business, aimed at accelerating long-term growth, with Jim indicating a potential reduction in position if the stock trends higher.
- Rapid Market Recap: Stocks mentioned in Tuesday's rapid-fire segment included UnitedHealth Group, CVS, and Humana, highlighting a focus on a diversified investment portfolio, with Jim Cramer's charitable trust holding positions in AAPL, SBUX, GS, and GOOGL.
See More
US Stocks Decline as Oil Prices Surge Amid Iran Tensions
- Market Decline: The S&P 500 index fell by 0.63%, the Dow Jones Industrial Average dropped by 0.66%, and the Nasdaq 100 index decreased by 0.78%, reflecting investor concerns over geopolitical tensions, particularly the escalating situation in Iran that could impact market stability.
- Surge in Oil Prices: Crude oil prices rose over 2% to a four-week high, with the market closely watching diplomatic efforts ahead of President Trump's deadline, as failure to reach a ceasefire could lead to escalated conflict and further inflationary pressures.
- Supportive Economic Data: February's non-defense capital goods new orders increased by 0.6% month-over-month, surpassing expectations of 0.5%, indicating a rebound in capital spending, although overall market sentiment remains influenced by oil prices and geopolitical factors.
- Interest Rate Expectations Shift: The market is pricing in only a 3% chance of a 25 basis point rate hike by the Fed at the April meeting, reflecting cautious investor sentiment regarding economic outlook, especially in light of rising oil prices potentially driving inflation.
See More
Arm Holdings Shares Drop: Reasons Behind Morgan Stanley's Downgrade of the AI Chip Company.
Arm Holdings' New Strategy: Arm Holdings has announced plans to develop its own data-center chips, marking a significant strategic shift for the company.
Market Analysis: According to Morgan Stanley, this move is logical, but it may take time for shareholders to see the benefits.
See More
