Brianne GardnerApple IncAAPLWAITJul 31, 2026

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.

The fundamentals haven't changed. They're still way behind in AI with no plan. Valuation is more reasonable than it was. It's still slow growth. It's money looking for a home. Pure and simple.

There's a lot of money going into it. There are 2.5 billion Apple devices in the world is no joke. And they could deliver AI in them. There's room to run. He wrote a covered call at a $350 strike; if it stalls here a bit, he gets paid an options premium. He loves it. He's been in and out of it for 15 years. Likes the coming cycle: the flip phone, prospects in China. Apple Intelligence is just getting started which can help with a multi-year upgrade cycle.

Is suing OpenAI, cleaming it stole Apple's IP to build its own consumer devices, essentially naming Apple employees who left for OpenAI. But some accuse Apple of sour grapes. Then again, OpenAI faces many lawsuits of wrongdoing. OpenAI's lawsuits could distract it from winning the AI race, Apple's suit could be the first of more IP ones.

Sticking to what it does best -- strong products with high margins, expanding services, tightening up the ecosystem. Breaking out to new highs, which is a great technical structure. Technically continues very strong. Lots of cash. 

Not high beta, only slightly above S&P. Not most exciting growth. Not in AI, but you can't own just AI. Bit of a premium of 34x PE for 13% growth, but not many do what it does.

He still owns it but is selling some calls to raise some income. He raised the hedge for protection of the portfolio after such a big run. It was only about $175 a year ago. Had $111 billion in revenue with 49% gross margin in the last quarter. He feels it is pretty fully priced.

Apple's the one to watch in the second half of 2026 given product launches, while the Mag 7 has fallen from highs.

We're waiting for their refresh, for their AI story to pan out. What's keeping shares buoyant is the anticipation of their new products coming out and could eventually lead the Mag 7.