Apple stock has continued to run higher while its sales and earnings growth dramatically slowed, especially in the last two years. Over the last five years, the stock price is up 262%, revenue is up just 45.9%, and diluted earnings per share (EPS) increased by 90.5%.

Several Wall Street analysts have cut their ratings or price targets on Apple stock ahead of the company's earnings report next week.

Jefferies downgrades Apple’s stock, taking a cautious view on the next couple of quarters and on broader AI demand. Plus, Counterpoint Research notes sluggish China performance.

Apple shares fell Tuesday after Jefferies downgraded the stock to an “underperform” from “hold” on Monday, noting that flagging iPhone sales and weak demand for its artificial intelligence (AI) features in newer models would lead the tech giant to undershoot quarterly revenue forecasts.

The latest Apple stock downgrade centers around iPhone sales and the weakening consumer electronics market. Here's what investors need to know.

Apple faced two downgrades ahead of earnings, with analysts citing weak iPhone demand. China continues to be a headwind for sales.

Forecasts for weak iPhone sales and a weaker update of new artificial intelligence features prompted strategists led by Edison Lee to lower the rate to Underperform from Hold.

Jefferies has issued a stark warning for Apple investors, downgrading the stock to “underperform” from “hold” and lowering its price target to ₹200.75 from ₹211.84, as per a CNBC report. This new target implies a potential downside of 13% from Apple’s current market price.