Jeff Mills on Fast Money Apple Inc AAPL-Q COMMENT May 09, 2022

Doesn't mind nibbling here around $200. Lots of moving parts, and no one knows exactly how they'll play out. It is a laggard. Support is around $190-200. If you buy here, and it goes 5-10% lower, he'd look to exit. But if it pushes higher, and you're up 10%, he doesn't mind adding more.

Monday they host a Worldwide Developer's Conference and some have bid on the stock today based on that, up 1.64%. However, Trump wants Apple to build iPhones in the US, which is a serious problem and make Apple hard to own. However, maybe Apple can catch a break now that Elon Musk is drawing so much fire.

They held their developer's conference today, with no big news. As long as you didn't hear "switch" from that conference, then hold onto Apple. This has been dowgraded, but he thinks that downside will be limited. He's long been a believer in this name. The company has been in a dry spell, offering no new products, but it can always buy another company. Also, Apple could lose the Google or Epic case, but likely not both. Also, Apple never stands still; the CEO has been busy dealing with Trump (i.e. shifting production from China to India).

It is a great brand but does not have enough of a margin of safety for him since it trades near 30X forward earnings. Most earnings come from the sale of hardware and there is not a lot of margin in this. Also tariffs could have a big effect. It has other parts as well.

There is a lot of noise around it but it is one of the largest companies in the world, although not one of the leaders. It is one of the worst in the AI space. The fundamentals should do well but it might take a while for it to reach its 15% upside. She gives it a 3 out of 10 for valuation.  It is a money making machine with most of the bad news priced in. She is starting to see some sells. If owned you could trim your position.

You can't bet against their eco-system and their ability to buy back shares, but now there are many tech competitors to buy.

Compared to tech peers, Apple has been stuck for so long. It's depending on this super upgrade cycle which isn't happening, but it eventually happen but not in the next few months. Trades at 26x forward PE. Step in when it shows an uptrend.

He sold a covered call and brought a few dollars in. This isn't doing too much. Got it back today basically for nothing. Wrote another call expiring in 1.5 weeks.

Is -6% the past year and -19.7% this year, and has been trading sideways as the rest of tech has been roaring. The company last gave tepid guidance because of Trump (25% tariff on iPhones), and gave an adverse ruling against their app stores. The stock is out of favour, uncertain, but he will hold on. Past downturns have turned out to be buy opportunities. Trades at 28x PE, down from 35.5% at its peak last July. Their recurring service revenue now amounts to 25% of overall, and growing faster than all other businesses. AAPL has bottomed several times in recent years, bottoming at 25x PE, the last time in early April after tariffs, then quickly recovered. During the 2022 bear market, the PE plunged to 20x PE, then rebounded strongly. Since it bottomed at the start of 2023, shares rallied 93% of the time in the next 3 years. Meanwhile, the earnings growth is 14% projected this year, while the S&P is projected at only 9.4%. So, Apple deserves a premium, now trading at 28x PE vs. the S&P's 23x. Apple PEG ratio is under 2 while the S&P is 2.5, so if Apple had that PEG ratio, AAPL should sell at 35x PE and $250. Therefore, buy Apple at $180, too cheap to ignore, or 25x PE, but if it shares off the negativity, this should trade at 35x PE.