Tag: Downgrade

Dow Jones Surges 300 Points as Apple iPhone Event Approaches, Cisco Stock Shakes Off Downgrade

A winter wave of COVID-19 may be brewing in the U.S., with many states reporting distinct increases in confirmed cases. More economic stimulus may be necessary if the pandemic worsens from here, but Congress remains deadlocked on the issue. Despite all of this, the stock market was surging on Monday, with the Dow Jones Industrial Average (DJINDICES:^DJI) up 1.05% at 1:05 p.m. EDT.

Tech giant Apple (NASDAQ:AAPL) was the Dow’s top performer on Monday, rallying hard one day before the company is expected to announce iPhones that feature 5G technology. Shares of Cisco Systems (NASDAQ:CSCO) were also higher despite an analyst downgrade.

5G text over earth.

Image source: Getty Images.

Apple surges ahead of iPhone event

If 2020 were a normal year, Apple’s latest iPhones would have likely already launched. But supply chain disruptions due to the COVID-19 pandemic forced Apple to delay the launch by a few weeks. At an event in September,

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Why iPhone Users Won’t Be Able To Downgrade To iOS 14 Anymore


  • Apple stopped signing iOS 14 on Thursday, Oct. 1
  • This came a week after Apple released iOS 14.0.1 for iPhones
  • The new version brings fixes to some issues found in iOS 14

The iPhone users who upgraded their Apple smartphones to the latest iOS version, iOS 14.0.1, will no longer be able to downgrade to the base iOS 14 version anymore. This is because Apple has stopped signing it.

The Cupertino tech giant stopped signing iOS 14 on Thursday, Oct. 1, effectively preventing iOS 14.0.1 users from downgrading to the older, but also recently released, version. Apple made the move a week after releasing the latest iPhone operating system version.

The new iOS 14.0.1 update, which was released on Sept. 24, brings several fixes to some problems that users experienced in iOS 14. The fixes include the following, per the release notes:

  • Fixes for an issue that resets
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A Rare Wall Street Downgrade

Something unusual has happened on Wall Street regarding Apple. Earlier this week, UBS issued a rare stock rating downgrade, from “buy” to “hold”.

To be fair, the change in opinion happened when coverage switched analysts within the same sell-side firm. Still, this could be a good opportunity to look at the less-than-bullish opinion from an expert on Apple’s stock. See bullet points below.

Counterpoints to bullishness

  • Service revenues linked to iPhone sales should decelerate. While services have risen over 20% per year since around 2016, product sales have increased in the low-single digits, and theorerically both trends should converge.
  • Shares tend to outperform ahead of the iPhone launch, and underperform after it. The analyst, therefore, believes in a repeat of the “sell the news” wave observed in previous years.
  • Valuation does not match growth trajectory. The analyst notes that a forward earnings multiple of 29x is “at 1.5 standard deviations
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