Should you buy Apple stock after the WWDC 2023?

On Monday, Apple Inc (NASDAQ: AAPL) unveiled the “Vision Pro” mixed reality headset – it’s first major product release since 2014. Still, a D.A. Davidson analyst downgraded the stock to “neutral” today.

Apple stock lacks a meaningful upside

Tom Forte also lowered his price target on the tech behemoth to $185 this morning that doesn’t suggest a meaningful upside from here.

The analyst is convinced that the VR headset that Apple announced last night was already priced into the Apple stock. On CNBC’s “Halftime Report”, he said:

Stock’s trading at all-time highs. It’s trading at a premium multiple and then there are structural challenges to mass adoption of AR/VR hardware that will be difficult even for Apple to surmount.

Following the WWDC 2023, Deepwater’s Gene Munster also said that unit growth could take another five years or so (read more).

Apple needs more content for its Vision Pro

Apple has already confirmed that Disney+ will be available on its Vision Pro that’s scheduled to launch in early 2024. Still, Tom Forte said today:

We’re waiting to see more content. It’s got a two-hour external battery life; that’s also limiting. Then a small portion of the population, they get motion sickness when they use the product.

It is noteworthy, though, that the multinational has partnered with Unity Software Inc for gaming content on its new VR headset. But the D.A. Davidson analyst remains concerned that the price tag of $3,499 may hurt mass adoption as well.

At writing, Apple stock is up nearly 45% for the year.