Apple disputed the negative call by Goldman Sachs on Friday, which hit the stock, taking issue with the firm’s negative characterization on how Apple would account for its new TV+ service.
Goldman said that the one-year free trial of the TV+ service would have a “material negative impact” on earnings by showing lower hardware profit margins. Goldman believes that this issue will send the stock significantly lower, so the firm cut its 12-month price target.
“We do not expect the introduction of Apple TV+, including the accounting treatment for the service, to have a material impact on our financial results,” the company said in a statement to CNBC.
Apple shares – which fell as much as 2.6% on Friday – finished trading down 1.9% at $218.75 a share.
Goldman predicted a slide greater than 25% in the stock over the next 12 months. The firm cut its 12-month price target on the company to $165 from $187. The move made Goldman’s target the lowest of the major Wall Street banks, as well as…