Apple stock has continued to run higher while its sales and earnings growth dramatically slowed, especially in the last two years. Over the last five years, the stock price is up 262%, revenue is up just 45.9%, and diluted earnings per share (EPS) increased by 90.5%.

Jefferies downgrades Apple’s stock, taking a cautious view on the next couple of quarters and on broader AI demand. Plus, Counterpoint Research notes sluggish China performance.

Apple shares fell Tuesday after Jefferies downgraded the stock to an “underperform” from “hold” on Monday, noting that flagging iPhone sales and weak demand for its artificial intelligence (AI) features in newer models would lead the tech giant to undershoot quarterly revenue forecasts.

Apple faced two downgrades ahead of earnings, with analysts citing weak iPhone demand. China continues to be a headwind for sales.

Shares of Apple (NASDAQ:AAPL) are souring fast, with the iPhone maker plummeting into correction territory (down just north of 14% at the time of writing) over a relentless storm of analyst downgrades.

Forecasts for weak iPhone sales and a weaker update of new artificial intelligence features prompted strategists led by Edison Lee to lower the rate to Underperform from Hold.

The latest Apple stock downgrade centers around iPhone sales and the weakening consumer electronics market. Here's what investors need to know.