UBS downgraded $Apple (AAPL.US)$ , $Amazon (AMZN.US)$ , $Alp...

UBS downgraded $Apple(AAPL.US)$ , $Amazon(AMZN.US)$ , $Alphabet-A(GOOGL.US)$ , $Meta Platforms(META.US)$ , $Microsoft(MSFT.US)$ , $NVIDIA(NVDA.US)$ to Neutral from Overweight, citing “earnings momentum reversal.”

“Investors attribute the run in mega-cap stocks to animal spirits and the impact of AI; however, our work indicates that surging earnings momentum fueled this upside.”

“Unfortunately, this momentum is collapsing, with Big 6 EPS growth expected to decline from 42% to 16% over the next year, while the rest of TECH+ and non-TECH+ stocks accelerate.”

The downgrade decision by UBS is not rooted in concerns over high valuations or skepticism about AI technology.

Rather, it is based on "the challenging comparables and cyclical forces that are currently affecting these stocks."

“These forces do not apply to other TECH+ companies or the rest of the market in the same way.”