In another blow to tech giant Apple (AAPL), Piper Sandler analysts have downgraded the company's stock from "Overweight" to "Neutral". This marks the second downgrade for Apple since the beginning of 2024. The downgrade comes as concerns about iPhone inventory levels and waning demand from China continue to weigh on the company.

Yahoo Finance Markets Reporter Jared Blikre provided insights into Piper Sandler's note, examining the market cap losses seen in Apple stock and other influential components in 2024 so far.

Since the start of the new year, Apple shares have fallen by 4.3%. Looking at premarket quotes, the stock was down another 1% at the open, putting its year-to-date losses at around 5%. Kumar, an analyst, highlighted the difficult comparisons to 2023 and anticipated constant currency headwinds that will persist into the first half of 2024, exacerbated by elevated interest rates.

As the largest market cap company globally, Apple's performance has a substantial impact on the overall market. This year's downturn in share price reflects a similar trend witnessed last year. A Barclays analyst has expressed disappointment in the iPhone 15, and expects the upcoming iPhone 16 to face similar challenges. Consequently, Barclays downgraded their rating to underweight, equivalent to a sell rating.

Piper Sandler's downgrade to "Neutral" indicates a more cautious stance, though they maintain a price target of 205, higher than the previous day's closing price of 184.25. However, some market analysts are pointing to a potential double top formation, which could further impact Apple's stock performance.

The technology sector as a whole has faced a difficult start to the year, with the technology-focused XLK index falling by 3.6%. This contrasts with its strong performance in the previous year. Additionally, a five-year chart reveals that Apple's stock is currently at an all-time high, but a potential breach of the breakout line at around 170 could pose a significant challenge for both the company and the overall tech sector.

Investors and industry watchers will closely monitor further developments regarding Apple's stock performance and how it navigates the challenges of iPhone inventory levels and demand uncertainties in China.

(Note: All information in this article is derived from the provided context and does not include additional entities, numbers, or dates outside of those mentioned.)