Opinions
Gordon Reid
Apple Inc
AAPL-Q
COMMENT
Feb 17, 2016
Stock price when the opinion was issued
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She added around $210-215. Their earnings call was excellent. Growth is only 2%, but topline was much better. The iPhone 17 will be a better roll-out than the 16, given the AI presence, and Apple continues to do well in China, especially the Mac. The negativity over Apple is over. Buy dips.
A trade, not a long-term investment. He trimmed it, because he's been buying higher from $206, and will sell when he sees exhaustion in shares. $235 was a temporary ceiling, so he took some profits (sold half his position). He doesn't look at prices, but how the stock reacts to the overall environment. Is purely a trade.
Sat out capex on data centres and infrastructure that's depleting other companies' cash balances. Time will tell whether this was a good move or not. The big capex spend may not have been the most efficient use of capital.
Core company beliefs are free cashflow and earnings. Consistently buys back shares, which enhances return to shareholders. Apple owns the end consumer. Don't count it out yet.
Premium contentApple's revenue for the last quarter stood at $94 billion. This reflects a decrease of 1.39% from the previous quarter, indicating some short-term concerns about sustained growth. However, compared to the same quarter last year, there is a promising increase of 9.63%, pointing towards positive year-over-year growth that suggests underlying business strength. Social media mentions are up 53.1% in the past 24h.
Premium contentApple EBITDA for the last quarter was $28 billion, which represents a significant decrease of 13.08% compared to the previous quarter. While this is concerning, it is only a slight 0.61% decrease compared to the same quarter last year, which could suggest some stability over a more extended period. Social media mentions are up 23% in the past 24h.
Premium contentOn Tuesday, they roll out the iPhone 17 and he likes what he's hearing about them. But Wall Street doesn't seem to care. Own it, don't trade it. Is up only 7.78% the past year, trailing the S&P, but doesn't bother him. Is up 41% since the April low, back in the good graces of Trump. Apple sales are growing again. Remains a huge position of his.
Has been painted with a brush of being a hardware company that might disappear because some kid in a garage might come up with something better. This is basically why hardware companies tend to be assigned lower valuations. They are working hard towards building a services business with recurring revenue where there is more certainty. About 10% of their business now is Apple Music, Apple pay, etc. and these are applications that he thinks will have more traction in the future. The one thing that has hurt is the success of the iPhone. About a 3rd of their total market capitalization is in cash.