Each week, Wall Street analysts revise their outlooks based on shifting economic landscapes, company performance, and political developments. This past week, analysts turned cautious on Microsoft, offered a qualified reprieve to Apple, and recalibrated sentiment on several names across tech and consumer sectors. Here’s your roundup of key analyst calls you need to know.
🍏 Apple (AAPL): Keybanc Upgrades to Sector Weight
Key Reason: Tariff Exemption Calms Worst-Case Fears
Keybanc upgraded Apple (NASDAQ:AAPL) to Sector Weight, citing relief from potential smartphone tariffs as a major de-risking factor. The exemption removes the immediate threat of a trade war hit to Apple’s margins and product pricing.
However, the optimism stops short of euphoria. Keybanc flagged ongoing concerns:
- Soft global consumer spending
- Underwhelming AI roadmap
- The looming DOJ antitrust lawsuit against Google, which could impact Apple’s default search deal
“Apple’s not out of the woods,” the note warned. “The tariff relief removes downside—but not all the risks.”
Takeaway: Apple gets breathing room, but not a clean bill of health. Caution remains the dominant tone.
💻 Microsoft (MSFT): Downgrade Sparks Attention
Key Reason: AI Growth Moderation and Infrastructure Pullback
Though the analyst’s name wasn’t disclosed in the excerpt, a prominent Wall Street firm downgraded Microsoftfollowing:
- Slower-than-expected growth in Azure’s AI cloud segment
- A pause or cancellation of several large-scale data center projects
- Concerns over valuation amid macro headwinds and AI ROI
The firm noted Microsoft’s 11.8% YTD decline is relatively tame compared to tech peers like Tesla (-40%) and Nvidia (-22%), but warned that AI enthusiasm may have outpaced near-term fundamentals.
“Microsoft has overspent on infrastructure and is now shifting to a more cautious investment cadence.”
Still, analysts acknowledge that Microsoft remains less exposed to tariff impacts, given its software-heavy revenue base and enterprise customer stickiness.
📡 Quick Hits: Other Analyst Moves Worth Watching
- Cloudflare (NET): Downgraded as valuation looks stretched in the face of competition and decelerating enterprise spend.
- Coty (COTY): Upgraded after a surprisingly strong Q1 and upwardly revised guidance, as beauty sector resilience continues.
