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NASDAQ:AAPL
This summary was created by AI, based on 85 opinions in the last 12 months.
Experts provide a mixed view of Apple Inc (AAPL) amidst concerns regarding its position in the AI landscape and the pressures on margins due to rising costs, especially in chip manufacturing. Many emphasize the company's strong fundamentals, characterized by substantial free cash flow and an enormous share buyback program, while noting that valuations seem high at around 33-38x PE. The consensus suggests that Apple is adjusting cautiously to avoid excessive capital expenditure on AI, instead leveraging existing partnerships with companies like Google. Despite recent softness in revenue and market performance, particularly in the smartphone segment, Apple's loyal consumer base and expanding service offerings provide a robust outlook, indicated by steady over the past year. However, the lack of innovation and reaction to rising manufacturing costs raises questions about future growth potential, with some experts advising caution on current pricing levels and advocating for profit-taking.
Sell Amazon and Apple now? The stock has stagnated the past two years, but it makes more money. Apple keeps investing in near projects, which is a good sign. Hold onto both of them for the long haul. He owns a lot of each.
Apple reported after the bell and overall it was a beat--he's happy. They beat earnings by 8 cents a share; revenues beat; and their revenue projections for the next quarter are surprisingly bullish. What impressed him most was how the non-iPhone revenues are growing, namely services. Services are annuity revenue, keep giving. 10 years ago, people wrote off Microsft, but they missed the story. MSFT transformed itself into a utility--you have to pay MSFT each year for the service. Same with Apple which is now making money in services. Also, their wearables division is exploding, says their CEO. He's happy with their report today. And their iPhones in 2020 will be 5G-equipped, which will encourage customers to upgrade. The only cloud on the horizon is Trump.