1. APP's stock surged 700% but now faces lowered expectations from investment banks. 2. Critical reports from short-sellers have shifted Wall Street's sentiment on APP.
The downgrade by investment banks, coupled with critical short-seller reports, typically precedes declines in stock prices. Historical cases show that firms facing similar sentiment shifts often experience prolonged downturns, as seen with other tech stocks after peaks.
The shift in sentiment from strong to bearish reflects underlying concerns affecting APP's valuation, which can lead to immediate sell-offs. The mention of short-selling firms and lowered bank expectations emphasizes the urgency of the situation.
The immediate impact is significant due to lowered expectations, influencing investor behavior quickly. Similar cases in tech stocks show that investor sentiment can shift rapidly over a short period when negative reports emerge.