Apple Inc (AAPL)

Gen AI will continue to be a force among the Magnificent 7. Nvidia and Microsoft will remain the leaders, but the two sleepers that can outperform Apple in 2024 are Amazon and Alphabet. Apple is quality growth, which he likes, but in 2024, Apple might take a backseat to the rest of the Mag 7.

There has been a shorter term half-sell signal this past week. Expect some support at the $170 level. Anywhere between $160 and $170 would be a lower equilibrium level. Some indicators such as relative strength are softening and the stock is starting to weaken against the S&P.

Looking ahead, shares could raise on rising sales of their new iPhone and better service revenues, not to mention show dramatic growth in India to quell investor fears over China.

People are too worried about the short term headwinds. It is still a great story with great products including new ones coming out. There is long term opportunity in the service part of the business where there are better margins. Also this part is not cyclical like the hardware division.

Chart indicating a good time to buy. Recently bounced off bottom. Would be a good investment for long term investors. Excellent company. Bell weather for markets in general. 

Perceived headwinds were weak Chinese demand and weak demand for the new phone, but the story is more about the services stream and its strong revenues. Plus, China turned out to be just fine.

A no-growth, but overall a good quarter they just delivered. Their services revenues are up 16%, a higher-margin business than hardware. You must consider services when you look at Apple. Their long-awaited multiple expansion is here now.

It beat estimates last night, but offered weaker guidance and declining revenues. And yet it is down less than 1% today. Why? The put-to-call skew was at the 80th percentile, favouring puts. We haven't had this kind of bearish representation for Apple in 5 years. The market needed something really bearish in the Apple report to extend negative sentiment.

Transitioned well from products to services. Once you're in the ecosystem, it's hard to get out and you'll just pay the higher price for services. Services side will continue to grow, even if weak product numbers. Growth may slow down a bit. He'd welcome returning some of their vast amounts of money to shareholders.

Are concerns with how hot the new phone is. There may be a software upgrade to fix that, but not sure. Some consumers are holding off on buying. Meanwhile, in China, Apple faces competition from Huawei whose sales are rising. Watch earnings on Thursday.

Questions on whether iPhone can growth further. Ability to sell services to wide range of customers since everybody owns an iPhone. Very good business. Will hold for the long term. 

It reports Thursday and that could determine what happens in tech until Nvidia reports on Nov. 21. That's how important Apple is. It needs to deliver a good quarter and one that the market will give credit for. But many are betting it will slash its forecast.

He just bought Apple puts. They report next week and he expects their comments to be negative. In China, Huawei is gathering market share from Apple, while Beijing is saying, Don't buy Apple phones. That's why Apple phone production is shifting from China to India. Apple is not showing growth in hardware. Same with services. The stock is overvalued. That said, if share get crushed next week, he would be the first to buy them, because there's an insatiable appetite for them.

He's been writing many calls on this the past 3 months. If this pulls back next Thursday when it reports, he will add to his holding. Earnings may not be great, but he will own this the long term. Also, the PE has declined.