Opinions
Darren Sissons
Apple Inc
AAPL-Q
PARTIAL SELL
Jul 31, 2018
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.
This is a great company but its business has evolved. Its penetration in developed markets is very high and so its sales are replacement cycle. In less-developed markets, the phone is so expensive that it is difficult to increase penetration. The company has a lot of cash, but it is not using it. In addition, the company has grown so quickly over the last few years that continuing the momentum will be a challenge. For someone who has owned this company for a while, he would recommend taking the cost basis off the table. He doesn’t expect this to have a huge correction, which is what he expects for Twitter, but he does expect Apple to become range-bound.