Wall Street Is Downgrading the Stock Market’s Biggest Winners

Wall Street Is Downgrading the Stock Market’s Biggest Winners


Tech stocks have rebounded so well from their down year in 2022 that there might not be a buying opportunity there anymore.At least that’s what some Wall Street analysts are saying as they slap downgrades on some of 2023’s best performers like Tesla (TSLA), Apple (AAPL)and Alphabet (GOOGL).“It’s difficult to model upside to our current high-single-digit [websites] growth estimates,” UBS analyst Lloyd Walmsley said in a note on Monday that downgraded Alphabet shares from Buy to Neutral.Walmsley joins a growing list of big tech analysts to caution about future upside in the 2023 rally. Two weeks ago, his colleague at UBS David Vogt downgraded Apple from Buy to Neutral, noting that “growth is likely to remain under pressure.” Three analysts have now downgraded Tesla in less than a week.Importantly, the downgrades aren’t saying that things look overly gloomy for some of the tech stalwarts. In fact, in some cases, analysts are still expecting the stocks to go up.The downgrades indicate the market is finally correctly pricing in the potential for future earnings, and therefore, the stocks might be priced just fine where they stand today.“We believe the stock now better reflects our posi …

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