Apple is set for another bumpy day after a downgrade by analysts.
Shares in the superstar tech company are down more than three per cent as US markets opened after Mizuho Securities downgraded the stock from buy to neutral with a $150 price target.
Apple shares plummeted more than four per cent on Friday amid a tech stock sell-off which this morning spread to Europe and Asia.
"The stock has meaningfully outperformed on a year-to-date basis and we believe enthusiasm around the upcoming product cycle is fully captured at current levels, with limited upside to estimates from here on out," said Abhey Lamba, analyst at Mizuho.
Apple was downgraded earlier last week by Pacific Crest analysts from overweight to sector weight.
Goldman Sachs on Friday issued a research note comparing the recent runaway performance of the five stocks to the tech bubble of 2000.
That dragged down the Nasdaq which finished down more than 1.5 per cent on Friday. The sell-off wiped more than $100bn in value from the five tech giants. And futures indicate a further fall when the US market opens on Monday.
"US tech needed a pullback. After all, the Nasdaq 100 is already (even after Friday’s reversal) up 17.5 per cent year-to-date," said Northern Trust's Neil Campling.
"Many funds have beaten the market due to these returns in what is described as one of the 'least creative trades of the year – and one of the most profitable'. Such ease of performance return feels, in many respects, too easy and thus ripe for unwinding," he added.