Gordon ReidApple IncAAPLHOLDNov 24, 2014

Not worried about it. Apple does well when everybody worries about capital spending, then doesn't well when there are worries Apple is not spending on AI. Whatever's in vogue.

Sat out the capex buildout, relying on owning the end consumer. Time will tell if this was the right strategy. Massive service industry, with margins above 75%. The default stalwart when investors get worried about AI capex debt. Really good brand and margins, best share buyback program ever. Market's still trying to figure out where it fits in the AI ecosystem.

A great company. Good long term stock. It will likely break out at some point, but will consolidate first

Since March, he's bought this 6 times and it kept moving higher. It's up 26% since the June 25 low of $273. It is losing near-term momentum, for sure, and is vulnerable to a deeper decline. When it does, the stock will pause, and he will continue to buy more, because this is the Mag 7 stock that will stand above the others.

Free cash flow is large and it pays a 3.5% dividend, better than peers. You need a stock like Apple to contrast with the high-beta semis stocks.

With Apple, there are always fundamental issues--manufacturing, chips, China, competition--which heat up as the PE rises, now 33x. If you're overweight Apple, they reduce their holding until the market climbs on the bandwagon when Apple is cheap and people load up. It always happens. She is happy to hold.

He sold half his position. It was frothy at $330 going into earnings. There's margin pressure from the rising costs of chips going into their new iPhones. While others were saying that Apple finally was going AI, he's still waiting. If you have an oversize position, takes some profits. But if your average cost of $15 and you're long term, then you'll pay a mighty big capital gains tax. Doubts this will fall back to $200. The fundamentals have not changed. Overall, the chart moves up with ups and downs. If this falls to $270, he's back in. Now, it's too expensive at 33x PE. He'd add at 25x PE though doubts we'll reach that.

Huge runup, she took profits. Great job building one of the strongest ecosystems in the world. Last quarter was strong. Warned that margins in coming quarters may be pressured by higher memory costs and supply constraints. Still playing catchup in AI.

Still likes it, but sees better value in companies that are building AI infrastructure rather than buying it. Be patient.

He sold half his holding yesterday before earnings, because this was priced for perfection after a tremendous run. Still trading around a rich 35x PE. Also, they suffer price increase on chips from Qualcomm. Apple still makes up 6.5% of his portfolio.

He sold some shares before earnings. He's never been underweight Apple which has tons of free cash flow, product cycle upgrades and superb management. 

Despite this pullback, she's still not interested. Trades at a high 32x forward PE. We don't know when gross margins will trough. Services division are slowing. Overall, the quarter was fine, but is still not cheap.

They had a great run, so any pullback is normal and aren't losing their moat in smartphones Obviously, there are supply issues and price increases will dampen demand. She fully believes in the future of the company.

Trading at 38x forward PE, has never traded that expensively before. They have to get everything perfect. Sales in China will be particularly important.

They avoided the AI spending crazy and took a measured approach, then partnered with other companies that did spend. These AI models will become commodities. It's interesting that CEO Tim Cook's successor is the head of hardware; he expects a serious change in Apple hardware which is where capital will be deployed. They will retain their loyal customers.

The tech intelligensia says that Apple missed the important story of our lives, AI, a lost opportunity and a failure. He likes that Apple let Alphabet spend billions on AI, then paid Alphabet a nominal sum to use that AI in the iPhone. A great deal.