Apple Inc.'s (AAPL) rising share price has persuaded a number of bearish analysts to argue that investors should sell the company's stock on anticipation of positive earnings news, as the company will announce its quarterly financial results later today. Boris Schlossberg, managing director of FX Strategy for BK Asset Management, told CNBC that Apple has been losing its luster, fading as a luxury brand that many people want to buy.
'Sell the News,' Says Analyst
"I think it's very much 'sell the news' at this point," he stated on CNBC's Trading Nation. He emphasized that while "everyone is focused on a number," investors might benefit from focusing more on sentiment, or "feelings" as he called them. "Apple is a luxury company, and the worst thing a luxury company can do is lose its cool," he stated. "Apple has really lost a lot of its cool over the last two years because its products just have not been up to spec in many ways." (For more, see also: Buy Apple, It's a Luxury Brand like Vuitton: HSBC.)
Schlossberg made this statement after Apple's shares rose to an all-time intraday high of $169.94 on Wednesday, according to Google Finance. The stock's latest gains were partially attributed to optimistic expectations of the latest earnings, according to Fortune. Early reviews of the iPhone X, which in one case described this model as the "best iPhone yet," were also credited with driving Apple shares higher. (For more, see also: Apple's Brightening Profit Outlook Could Drive Techs Higher.)
While many analysts seemed optimistic about the iPhone X, Schlossberg appeared more skeptical of the device's prospects, CNBC reported.
"I think it's going to be very interesting to see if the X really rescues them... if it becomes that cool object, or it becomes an object of derision as we go forward. So to me, the jury is very much still out," he stated while on CNBC.