Boeing Downgraded, Apple & Facebook Upgraded Why?

TL;DR

Boeing downgraded, Apple optimistic on 5G, Facebook upgraded - diverse stock outlook.

Transcript

well Holy Smoke these guys we got some upgrades and downgrades going on out there welcome to the financial education Channel I am Jeremy if you are new here I want to talk about three stocks in particular today that have been upgraded or downgraded within the last 24 hours one being Boeing stock we know Boeing's in a bad situation right now we want... Read More

Key Insights

• 🥺 Boeing faces challenges with recent accidents affecting the 737 max, leading to a downgrade by Edward Jones.
• 👾 Apple's growth potential lies in the release of a 5G iPhone in 2021 and strong services business despite hardware concerns.
• 💪 Facebook's stock receives an upgrade due to positive revisions, stronger regulations, and the exhaustion of negative headlines.
• 😃 Regulation can benefit big tech companies like Facebook in the long term, protecting them against competition and risks.
• 🐕‍🦺 Apple's stock price is influenced by the balance between hardware revenues and services growth, with a price objective aligned with projected scenarios.
• ❎ Negative headlines have less impact on Facebook stock due to the saturation of criticism and the company's resilience.
• 🐕‍🦺 Wearables, such as AirPods and Apple Watch, contribute to Apple's growth story alongside services revenues.

Questions & Answers

Q: Why was Boeing downgraded by Edward Jones and what concerns were raised?

Boeing was downgraded due to recent accidents with the 737 max, raising concerns about financial results, additional expenses, and delays in orders. The accidents could impact the company's stock performance in the near future.

Q: What is the analyst's outlook for Apple stock and what factors contribute to its growth potential?

The analyst is optimistic about Apple's growth potential, especially with the release of the 5G iPhone in 2021. Despite current hardware concerns, upgrades in connection with 5G networks and strong services business contribute to Apple's positive outlook.

Q: How does regulation affect Facebook stock and why was it upgraded to a buy?

Increased regulation is seen as a net positive for large platforms like Facebook, protecting them from competition and potential risks. Facebook was upgraded to a buy as operating margins are expected to improve, and negative headlines have less impact on the stock.

Q: What factors influence the analyst's price objective for Apple stock?

The analyst's price objective for Apple stock considers a scenario with flat hardware revenues but mid-teens year-over-year growth in services. Optimism around 5G iPhone release in 2021 and ongoing demand from the Asian market contribute to the price target.

Summary & Key Takeaways

• Boeing downgraded by Edward Jones due to recent accidents affecting 737 max, causing concern for financial results.

• Analysts optimistic about Apple's growth potential with 5G iPhone release in 2021, despite current hardware concerns.

• Facebook upgraded to buy as regulations strengthen big tech companies and negative headlines have less impact.