Opinions
Peter Mann
Apple Inc
AAPL-Q
BUY
Jan 05, 2015
Stock price when the opinion was issued
You might be interested:
Has owned this 20 years. Most shares have lulls and Apple is taking one now. Some fear that Apple will miss the AI revolution, but history says that Apple lets others do the heavy lifting in the innovation stage, then once the mistakes have been made, Apple makes it into their own. This could happen with AI. One possibility is Apple buying Perplexity for $25-30 billion. Apple has the cash, and the market would react very well.
(Analysts’ price target is $225.48)He'd say this one. Everyone accuses them of being slow to get on the bandwagon with generative AI, but they own the device side and that's where they're going to make a lot of money. Thinks we'll see in the next 6 months that they get Apple Intelligence onto all their devices.
His view of the price target is $240-250 this time next year, because then the AI offering will be in the marketplace. It should do quite well.
Despite rumours, CEO of Perplexity confirmed this morning that it's not for sale. Because of the whole Edge AI play, this name will be very intriguing going into the September launch and into the December launch of Apple Intelligence. Intelligence will be in all their devices globally.
New Bionic series chips came out in the last few weeks -- custom-designed processors. They're high performance and efficient; also integrate CPUs, GPUs, and neural engine capabilities. His own price target is $240-250 a year from now. Yield is 0.49%.
Premium contentApple Inc. is one of the world's largest and most influential technology companies, known for its innovative products such as the iPhone, iPad, Mac computers, and its growing ecosystem of services including Apple Music, Apple TV+, and iCloud. With a market capitalization exceeding $2 trillion, Apple has a significant presence in every facet of consumer electronics and services. The company's commitment to sustainability, technological advancements, and customer-centric approach has fostered strong brand loyalty and consistent revenue growth. Social media mentions are up 17.3% in the past 24h.
He bought more Apple. Doesn't know what they will do with AI, but is certain they will do something. Maybe they buy Perplexity, which would be a fine way to interface with AI. He sold this at $247.50, and looks attractive at $200. He's been rebuying this at an average cost of $209, and collected option premiums and small dividend.
Premium contentIs wavering about his call on this to own it, not trade it. Is expecting a non-exciting report and a slowdown in the growth in services revenue. Will they still receive $20 billion from Google to make Google Apple's default search engine, something a judge wants to end. Also, Epic is fighting Apple's policy to take a 30% cut from any transaction from any app downloaded from the Apple strore.
Now that tariffs are getting resolved, you could take a look at this name for potential growth going forward. iPhone brand will continue to do well. Expects it to fully catch up on its AI offering. Lots of cash on hand. Money spent on now-cancelled EVs can be diverted to R&D in AI.
He sees it as a software business that sells hardware. There are only two ecosystems. IOS and Android. Once you are hooked into one, you stay with it. Will generate a tremendous amount of excess cash this year. He expects it to continue. We are in the midst of an upgrade cycle and will continue into 2015.