Expelled again! Evercore removes Apple (AAPL.US) from tactical outperformance list.

Investment bank Evercore ISI has removed Apple (AAPL.US) from its tactical outperformance list, citing the company's fiscal first quarter 2024 earnings report as a major factor in their decision. The iPhone manufacturer's performance for the fiscal first quarter of 2024, announced on February 1st, exceeded analysts' expectations. However, investors are concerned about the company's business in China. Evercore analyst Amit Daryanani stated that Apple's revenue in China dropped by 12% year-on-year, with weakness in the region centered around wearable devices and iPads. Daryanani added, "Although the March quarter guidance was disappointing, we believe iPhone sales were largely stable." Daryanani noted several factors favorable to Apple, including the release of AI-based products, adoption of the Vision Pro augmented reality headset, continued free cash flow, and increased capital allocation. Previously, Goldman Sachs removed Apple from its Conviction Buy List due to concerns about soft demand for the company's main products and its underperformance in stock price. Since June of last year, Apple had been on Goldman's Conviction Buy List ranking in the top 20-25 positions. During this time, the company's stock price remained relatively stable while the S&P 500 index rose nearly 22%. Following Apple's removal from the list, the stock dropped 0.6% last Friday. Goldman Sachs stated that their Conviction Buy List is reviewed monthly and stocks that no longer fit their "best investment ideas" criteria are removed. At the time of writing, Apple's stock was down 1.47% in pre-market trading, at $177.025.